- WTI stalls its four-day rally, as the bulls take a breather.
- Surging covid cases globally re-ignite demand recovery concerns.
- US dollar rebound also caps the upside, eyes on stimulus news.
WTI (futures on NYMEX) has paused its four-day winning streak, consolidating near nine-month highs of $48.60, as the bulls await a fresh catalyst for the next move higher.
The black gold tracks the broader market sentiment, which has turned tepid amid the Brexit impasse and ongoing expectations of a likely US stimulus deal.
The risk-off mood induced a broad-based US dollar rebound, which is also seen weighing on the USD-sensitive oil.
Further, a surge in coronavirus cases and fresh restrictions globally once again thwart the prospects for oil demand recovery, limiting the upside, for now.
Germany posted a record of about 34K new cases on Friday while Australia imposed border curbs across the states and territories after a new cluster of the virus was found in Sydney.
Although the sentiment around the WTI barrel remains underpinned by the vaccine and stimulus-driven optimism.
Further cushioning the downside, the latest Energy Information Administration (EIA) report showed that the US crude inventories fell by 3.1 million barrels in the week to Dec. 11.
All eyes remain on the US stimulus update and sentiment on Wall Street for fresh trading impetus. Meanwhile, the US rigs count data will be also awaited.
WTI technical levels
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