WTI looks to build onto Wednesday’s recovery above $48 mark
|- WTI consolidates the upside above $48 amid a risk-on mood.
- Imminent Brexit deal optimism boosts risk, downs US dollar.
- X-mas eve light trading could trigger volatile moves.
WTI (futures on NYMEX) is consolidating Wednesday’s 2% recovery rally from one-week lows of $46.16, now holding close to $48.50 levels.
The black gold takes advantage of the upbeat market mood, as investors flock to higher-yielding assets such as oil, in anticipation of an imminent Brexit breakthrough.
The appetite for riskier asserts is boding ill for the safe-haven US dollar, lending support to the USD-sensitive oil.
With the coronavirus vaccine progress, markets expect a faster recovery in demand for oil and its products. The same is reflected by the draw in the US crude, gasoline and distillates inventories, which renders oil-positive.
“US crude inventories fell by 562,000 barrels in the week to Dec. 18 to 499.5 million barrels, the Energy Information Administration said on Wednesday,” Reuters reports.
Looking ahead, markets will keep a close eye on the Brexit developments while supply disruptions in Nigeria will be assessed for fresh direction on the prices.
WTI technical levels
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.