- Crude oil is recovering on Monday on the back of an improvement in risk sentiment.
- WTI barrel hit a fresh daily high at $52.25 and pulled back.
WTI (oil futures on NYMEX) rose further but failed to hold firm above $52.00 a barrel and pulled back. It is still up for the day, showing a modest recovery after the dramatic sell-off of last week amid concerns over surging global supply and a slowdown in demand.
The barrel trades slightly below $52.00, up 1.80% for the day but still significantly lower for the month. From the level it had at the beginning of November is 17% lower. Today’s gains represent a relief, but the dominant trend continues to point to the downside.
The greenback is down against majors but during the last hours recovered ground. Equity prices in Wall Street are posting strong gains. The Dow Jones is up 1.48% and the Nasdaq 1.59%. The improvement in risk appetite also helped crude oil prices move higher.
Levels to watch
To the upside, resistance levels might be located at $52.25/30 (Nov 26 high), $53.10 and $54.80 (Nov 22, 23 high). On the flip side, support could be seen at $51.45, followed by $50.50 and the $50.00 area (psychological).
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