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
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
