Home WTI consolidates in Xmas Eve markets around 21 4-hr MA
FXStreet News

WTI consolidates in Xmas Eve markets around 21 4-hr MA

  • WTI consolidates in bullish territory ahead of Xmas break.
  • Bulls relying on OPEC+ cuts and US/Sino trade deal for start of January.  

West Texas Intermediate crude is trading at $60.51, having travelled between a low of $60.51 and $60.62, down 0.15% on the day following a rise at the start of the week.

Bulls are content with the fact that there is a pact to curb global output by OPEC and its allies may be eased while  Kuwait and Saudi Arabia appeared close to a resolution on disputed territory. Reuters on Monday reported that Russian Energy Minister Alexander Novak said the group known as OPEC+ may consider easing the output restrictions at a coming meeting in March.

OPEC+ and US/China trade deal main themes for start of 2020

The key themes will stay with trade talks between the US and China and the fact that OPEC and its allies agreed to officially cut production by 500,000 barrels per day which will start in the beginning in January to bring  total output cuts for OPEC+ to 1.7 million barrels day, including the current cuts of 1.2 million barrels a day from October 2018 levels that was put into place in January 2019.

“In response,  CTA  funds continue to load up on energy markets with WTI crude and heating oil still expected to see a buying program ensue for the next few days. A fully backwardated curve in WTI and Brent will certainly help the bulls, as a positive roll yield reemerges “” providing yet another point of interest for money managers,” analysts at TD Securities explained.  

“That being said, traders should be mindful of any signs that risk appetite is waning. After all, much of the commodity rally materialized on sentiment rather than the fundamental after the “phase one” of the US-China trade deal.”

WTI levels

 

FX Street

FX Street

FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions.