- 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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD: The hunt for the 0.7000 hurdle
AUD/USD quickly left behind Wednesday’s strong pullback and rose markedly past the 0.6900 barrier on Thursday, boosted by news of fresh stimulus in China as well as renewed weakness in the US Dollar.
EUR/USD rebounds on Thursday after midweek pullback
EUR/USD tuned back into the high end on Thursday, getting bolstered by a broad-market selloff in the Greenback. US data that printed better than expected helped to ease concerns of a possible economic slowdown within the US economy looming over the horizon.
Gold holding at higher ground at around $2,670
Gold breaks to new high of $2,673 on Thursday. Falling interest rates globally, intensifying geopolitical conflicts and heightened Fed easing bets are the main factors.
Ethena Labs launches new UStb stablecoin backed by BlackRock's BUIDL token
Ethena Labs announced on Thursday that it has released a new stablecoin product, UStb. The new stablecoin will be fully collateralized by BlackRock's USD Institutional Digital Liquidity Fund and function similarly to a traditional stablecoin.
RBA widely expected to keep key interest rate unchanged amid persisting price pressures
The Reserve Bank of Australia is likely to continue bucking the trend adopted by major central banks of the dovish policy pivot, opting to maintain the policy for the seventh consecutive meeting on Tuesday.
Five best Forex brokers in 2024
VERIFIED Choosing the best Forex broker in 2024 requires careful consideration of certain essential factors. With the wide array of options available, it is crucial to find a broker that aligns with your trading style, experience level, and financial goals.