- 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
Australian Dollar extends gains despite mixed PMI
The Australian Dollar (AUD) continues to strengthen against the US Dollar (USD) following the release of mixed Judo Bank Purchasing Managers' Index (PMI) data from Australia on Friday. The AUD also benefits from a hawkish outlook by the Reserve Bank of Australia (RBA) regarding future interest rate decisions.
Japanese Yen fails to build on stronger CPI-led intraday uptick against USD
The Japanese Yen (JPY) attracted some follow-through buying for the second successive day following the release of slightly higher-than-expected consumer inflation figures from Japan. This comes on top of Thursday's hawkish remarks from BoJ Governor Kazuo Ueda, which keeps expectations for a December interest rate hike in play.
Gold price advances to near two-week top on geopolitical risks
Gold price touched nearly a two-week high during the Asian session as the worsening Russia-Ukraine conflict benefited traditional safe-haven assets. The weekly uptrend seems unaffected by bets for less aggressive Fed policy easing, sustained USD buying and the prevalent risk-on environment
Ethereum Price Forecast: ETH open interest surge to all-time high after recent price rally
Ethereum (ETH) is trading near $3,350, experiencing an 10% increase on Thursday. This price surge is attributed to strong bullish sentiment among derivatives traders, driving its open interest above $20 billion for the first time.
A new horizon: The economic outlook in a new leadership and policy era
The economic aftershocks of the COVID pandemic, which have dominated the economic landscape over the past few years, are steadily dissipating. These pandemic-induced economic effects are set to be largely supplanted by economic policy changes that are on the horizon in the United States.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.