WTI gains 2.0% amid market optimism on US election results
|- WTI snaps two-day losing streak as risks cheer Biden’s victory.
- Coronavirus woes challenge the bulls ahead of ADIPEC Conference.
WTI seesaws around the intraday high of $38.64, currently near $38.40, up 1.95% intraday, while heading into Monday’s European session. In doing so, the oil benchmark extends late Friday’s corrective recovery while parting ways from the previous two-day declines.
Although the coronavirus (COVID-19) resurgence challenges the outlook for energy demand, commodities benefit from the US dollar’s weakness. It should be noted that Reuters’ latest tally suggests over 10 million cases in the US as well as 30 million marks from Europe that suffer from the deadly virus. The pandemic has already pushed brake on economic activities in major EU states and the UK while America is still trying not to shut the door and shows readiness to form a COVID-19 taskforce team to tackle the problem. That said, the US dollar index (DXY) drops to the fresh low since September 01 while flashing 92.20 as a quote.
With Joe Biden’s victory in US presidential elections favoring more stimulus, risks are bid and the safe-havens stay mostly offered, like the USD, following the results. Even so, Trump challenges the outcome to keep the Republicans in the power in the Senate.
Also propelling on the market risks could be upbeat figures of the US employment data, published last Friday.
However, speeches from energy ministers from Saudi Arabia, Russia, Iraq, Iran, UAE along with OPEC's Secretary-General keep the oil buyers cautious. The three-day-long virtual event is known as the Abu Dhabi International Exhibition & Conference (ADIPEC).
Technical analysis
The 200-day SMA level, currently around $37.30 offers immediate support to the black gold whereas 61.8% Fibonacci retracement of the commodity’s October-November downside, near $38.85 can guard nearby upside.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.