WTI attempts a bounce above $45 ahead of OPEC+ decision
- WTI off the lows but trades within Wednesday’s range.
- Hopes for stimulus, vaccine and OPEC+ output cut delay underpin.
- Bulls remain wary amid downbeat US EIA data, ahead of OPEC+ verdict.
WTI (futures on NYMEX) reverses a dip below $45 so far this Thursday, as it holds the higher ground ahead of the highly-influential OPEC and its allies (OPEC+) oil output cuts policy decision.
Saudi Arabia and Russia remain at crossheads over the decision whether to extend the record oil output cuts, which led to a no-compromise between the alliance earlier this week. The OPEC+ meets once again on Thursday to resume discussions and eventually reach a deal on the output policy.
The OPEC+ is widely expected to extend oil cuts of 7.7 million barrels per day, or 8% of global supplies, at least until March 2021, per Reuters.
The coronavirus vaccine-driven hopes for a swift economic turnaround combined with US fiscal stimulus chatter underpins the sentiment around the higher-yielding oil.
However, the bulls remain cautious amid a smaller-than-expected draw in the US weekly crude stockpiles data, as published by the Energy Information Administration (EIA) on Wednesday. Crude oil stocks fell by 679,000 barrels in the week to Nov. 27, by less than the 2.4 million-barrel decline expected.
All eyes remain on the OPEC+ decision and US stimulus talks for near-term direction in the black gold.
WTI technical levels
WTI “faces the next hurdle at $46.24 (monthly high Nov.25) seconded by $48.39 (monthly high Mar.4) and finally $54.45 (monthly high Feb.20). On the other hand, a breach of $43.94 (monthly low Dec.2) would expose $43.04 (high Nov.11) ahead of $40.12 (weekly low Nov.16),” FXStreet’s Pablo Piovano explains.
WTI additional levels