Oil prices are holding steady today, boosted by a lower increase in US stocks, OPEC+ support, and strong demand from China. Internationally, Brent is up by 0.25% while in the United States, WTI price is slightly below $42 per barrel.
According to the Energy Information Administration (EIA), US inventories rose by more than 768k barrels last week. That number was significantly better than those released earlier by the American Petroleum Institute. It was also better than what most analysts in a poll by Reuters were expecting.
Oil prices are also rising because of the recent news on Covid vaccine. In a statement today, AstraZeneca and Oxford University said that its vaccine was safe, especially among older adults. This vaccine becomes the third one to be announced in the past two weeks.
China has also helped to support the prices. According to Reuters, the country has continued to acquire significant volumes of oil from countries like the United States and Angola.
Meanwhile, OPEC+ and its allies are considering more supply cuts. While the group was expected to raise output in January, a report seen by the media suggests that these increases could be postponed.
WTI prices technical outlook
Looking at the hourly chart, we see that WTI prices have been relatively steady recently. They are trading at $41.77, which is higher than November 13 low of 40. The price is also being supported by the black trendline that connects the lowest levels on November 9, 17, and today.
Therefore, in the immediate near term, I predict that the price will keep rising, with the next target being at yesterday’s high of $42.44. The invalidation zone for this trade will be at the today’s low of $41.30.
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Oil prices technical chart
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