The oil price has been lifted in the last few weeks by expectations of a quick economic recovery and more recently by the drawdown of oil inventories and expectations for a vaccine against Covid-19. This morning, despite reductions in cuts by OPEC+ cuts, oil is holding on to $41.
From a technical point of view, we are in a crucial phase for the WTI price, which is challenging the resistance zone at $41.50. A clear surpass of this level could open space for further recoveries, while at this stage there is still no clear signal of an imminent correction as “risk on” remains dominant on markets.
Chief analyst at ActivTrades and technical analyst for Italian newspaper 'La Stampa'. Carlo Alberto provides regular commentary for UK outlets including the BBC, Telegraph, the Independent Bloomberg & Reuters. He is also a weekly commentator for CNBC Italy and a columnist for La Stampa. He worked for Bloomberg as their Equity Research Fundamental Analyst before joining brokerage ActivTrades in 2011 to specialize in currency markets and commodities. In 2014 he published a 250-pages book on gold and the gold market, followed in 2018 by a new updated edition.
© 2019 High Leverage FX - All Rights Reserved.
© 2019 High Leverage FX - All Rights Reserved.