Crude oil price is heading for the third consecutive week of gains as investors balance the rising Covid situation with the hopes of a Covid vaccine. The price of Brent is trading at $44 while that of West Texas Intermediate (WTI) is down by 0.35% at $41.75.
This week, we have received important vaccine updates from companies like Pfizer, Moderna, and AstraZeneca. The three firms have said that their vaccines are safe and effective, with regulators set to conduct a review.
Indeed, media reports say that the European Union is prepared to spend about $10 billion to purchase the vaccine by Pfizer. In addition, OPEC+ members agreed not to hike production in January.
However, these positive news have been offset by the rising cases in the United States, Germany, and other countries. This means that demand will take a longer period to recover.
Crude oil price technical outlook
On the daily chart, we see that the price of Brent crude has been wavering recently. It is trading at $44, which is slightly below the important resistance of $46.36. It is also at the 50% Fibonacci retracement level while its volatility is dipping.
Therefore, for the rest of the day, I expect that the price will remain at the current level because there is no major scheduled event. The resistance for Brent oil price is at $45 while the support is at the psychological level of $43.
Brent oil daily chart