- WTI bulls wait patiently for the next opportunity at a discount to ride the demand optimism to the $45.00bbls.
- COVID vaccine hopes and a Joe Biden Presidency, combined with OPEC is supporting the demand side case.
WTI is trading at $41.38 having travelled on the bid to a high of $41.44 from a low of $39.44.
The price of oil is building its gains on the largest one day rally in more than five months as the news of the vaccine boosts risk appreciate and demand sentiment for the black gold.
A potentially effective vaccine could be deployed by year-end whereby Pfizer/BioNtech’s partnership has produced a covid vaccine that has worked 90% of the time in recent trials.
”This comes at a time when a sweeping second wave has depressed demand-side expectations, leaving the market to trade on expectations that OPEC+ could offset the slump in energy demand caused by more frequent lockdowns, by delaying the planned tapering of their production agreement,” analysts at TD Securities explained.
”OPEC+ delivered one of its strongest signals yet, implying it will consider delaying and potentially ‘tweaking’ the production agreement to offset the rising lockdowns, keeping a Great Rebalancing underway,” the analysts continued.
The analysts also were explaining that when combined with overly negative sentiment, OPEC+ support and rising demand expectations — particularly in the context of a potential vaccine — they see some room for the rally in energy prices to run.
WTI technical analysis
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Weekly chart
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Daily chart
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As illustrated in the flow of longer-term charts, it can be expected that should resistance on the daily chart hold, then a correction would open a buying opportunity to ride the next bullish impulse towards the next resistance structure/August highs.
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