.The WTI previously reversed to as low as $ 57.25 a barrel to trade above the $ 58.00 level.
.Crude oil markets are largely flat on the day as the markets take a breather from the successive days' gains.
The futures contract for the U.S. benchmark for sweet light crude oil, West Texas Intermediary (or WTI), previously dropped to $ 57.25 a barrel to trade back.
$ 58.00 level and is back in the green, setting the crude oil contract for a seventh day of consecutive gains (as long as it can stay above $ 58.00).
The upward momentum of previous days declined sharply on Tuesday; world stocks take a breather after major global stock markets were put on record for consecutive days last week,
weighs the crude oil market a bit. However, other industrial commodities remain well traded given depreciation in the US dollar, and this helps crude oil.
Fundamental update
The basic principles for crude oil remain mostly supportive. The three main supporting factors are indeed still very much intact; 1) Compliance with the OPEC + Pact remains strong
and Saudi Arabia continues to sharpen the world's oil supply amid its voluntary production savings of 1 million barrels per day.
deaths and transfers, which involve a strong recovery later in the year
the economy by the end of the year in an 'overdrive' (as said by various market commentators).
As Covid-19 cases are now declining significantly in the US and Europe, the recovery in demand already seems ready.
according to ING "it appears that refinery margins are already indicating a recovery in fuel demand, which has strengthened significantly recently". The bank continues to do so
"These stronger margins should mean that our refineries will see their use increase."
Elsewhere, a reported drop in Libyan oil production due to a stalemate in the Hariga port will contribute to a short-term tightening of the market, although this news has not yet been injected upside down in a crude oil market that has advanced far in a very short time, and some may consider it a foam.
It is worth noting at these levels the risks to crude oil prices; bad vaccine news from earlier last month (repeat of production of AstraZeneca, Pfizer and Moderna and the slow rollout of the Eurozone,
combined with concerns about the possible vaccine-resistant new Covid-19 variants), the price action weighed a few weeks, and any new negative development could get some steam from the recent rally.
Meanwhile, increased prices will test the decision of OPEC +; producers may be tempted to increase production to take advantage of higher prices.
WTI has already climbed halfway above the 2019 price range
The rate at which crude oil markets have risen over the past few days has been breathtaking. Burglary since mid-2019
From $ 50.00 to $ 65.00 of its price range, it took the WTI crude oil futures contract about five weeks to rise to the middle of this range in the first month. Bulls will direct a test of the top series of this 2019 series
$ 65.00 over the next few months. If prices fall, a January-high test of just under $ 54.00, which now coincides with WTI's 21-day moving average, is an excellent opportunity to buy (as long as the long-term principles are supportive, that is to say!) ).
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