W.T.I. Crude Higher but Needs a Catalyst to Test Resistance

Summary:

Crude oil is higher by 0.50% but the W.T.I. benchmark is unable to punch higher to test the $43.50 level. A lack of economic data has seen the U.S. dollar index trading unchanged.

Crude oil is higher by 0.50% but the W.T.I. benchmark is unable to punch higher to test the $43.50 level. A lack of economic data has seen the U.S. dollar index trading unchanged.

Oil was boosted earlier in the week by oil inventories which showed a rise of 0.8 million barrels in U.S. crude stocks. This was better than analyst predictions and the contract is still seeing support from positive vaccines.

Traders are now looking for OPEC to cancel their planned supply increase in January 2021 and this is helping to offset the continued lockdown restrictions in Europe and beyond.

Crude Oil Technical Outlook

Crude oil is higher on the day but the market is pausing into the weekend with a lack of new information to drive the price through resistance at $43.50. If this proves to be a top then the $40.00 level will be key. The Investing Cube team is currently available to help all levels of traders with the Forex Trading Course or one-to-one coaching.