WTI bounces-off weekly lows, re-attempts $47 mark

• WTI defends $46, bulls rescued by upbeat market mood.
• Brexit deal hopes offset US stimulus woes and crude stocks build.
• Focus remains on the virus, US stimulus updates and EIA data.

WTI (futures on NYMEX) has staged an impressive bounce from weekly lows reached at $46.16 earlier this Wednesday, underpinned by the resurgence of demand for risker assets and a broadly weaker US dollar.

The US oil currently trades flat at $47.02, having recovered entire losses. However, the black gold is on track to close the week on a bearish note.

The risk-on market mood prevails in the European session, thanks to the hopes for an imminent Brexit trade deal. The S&P 500 futures, the risk barometer, has turned positive after facing a big blow on news that US President Donald Trump has objected to the $900 billion stimulus package.

The upside in the WTI barrel is also backed by the broad-based weakness seen in the US dollar amid the upbeat market mood.

Oil fell in the overnight trades after the American Petroleum Institute (API) reported an unexpected rise in the US weekly crude stockpiles. The US crude inventories rose by 2.7 million barrels in the week to Dec. 18 vs. expectations for a draw of 3.2 million barrels, the latest API data showed.

Markets now look forward to the Energy Information Administration’s (EIA) crude stocks change data and fresh updates on the US stimulus bill and coronavirus stats.

Also, a raft of key US economic data will remain in focus for fresh dollar trades, which will eventually impact the USD-sensitive oil.

WTI technical levels