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  • WTI  prices consolidate between $41 and 1.4200.
  • Concerns about global demand weigh on WTI longs.
  • The market remains cautious with all eyes on the OPEC meeting,

Front-month WTI futures have been moving back and forth between $41.15 and $41.90 on Thursday with bullish attempts capped amid renewed fears about the consequences of the surging COVID-19 on global demand.

Oil prices tread water with all eyes on the OPEC

The price of the West Texas Intermediate barrel opened the day on the back foot on fresh concerns about the impact of COVID-19 in global demand with the investors holding their breath before the OPEC meeting on November 30 where the main worlds’ producers will discuss their plan to taper the current output cuts.

News about the rising coronavirus death toll in the US, which reached 250,000 on Wednesday and New York City’s decision to close all public schools have hammered risk appetite on Thursday. Likewise, Russia and Japan have reported increased numbers of contagions which has boosted fears about oversupply.

On the positive side, US oil stocks reported a smaller than expected increase on the week of November 13, according to the Energy Information Agency, which provided initial support for prices on Thursday.

WTI remains steady above $41

From a technical perspective, oil prices are moving sideways with support levels at $41 (November 18 low) and below here, at  $40 (psychological level and November 13, 16 lows) and 50-day SMA at $39.50. On the upside, immediate resistance lies at $42 (November 16 high) and above here, $43 (November 11 high) and late August highs at $43.80.

Technical levels to watch