​WTI: Two Positives Stimulate Prices to Soar 10%

WikiFX News (10 Nov.) - The good news on the Covid-19 vaccine plus hopes for the extension of OPEC+ production cuts started this week. WTI soared nearly 10% under the stimulus of the two positives and may embrace further upsides in the short term.

US company Pfizer and its German partner BioNTech announced on Monday that results from Phase III trials showed that their vaccine was 90% effective in preventing Covud-19 infections. In the wake of the upbeat news, the three US stock rose sharply, and WTI surged nearly 10% to an intra-day high of $41.32.

The OPEC+ production cut deal may extend to the end of 2022, said Saudi Energy Minister on Monday. At the same time, OPEC expects oil demand to gradually recover next year. Oil prices will gain bullish momentum from the news.

In the near term, investors should keep an eye on the EIA's monthly Short-Term Energy Outlook released on Wednesday, which may influence oil prices.

WTI is consolidating below $40.0 and may remain within the range of $38.0-$41.30 in the near term. If a firmer footing above $38.0 will be established in the immediate future, oil prices are likely to strike the resistance at $41.30 again, where a breach above may pave the way for a higher position of $43.0 or even $45.0

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Chart: Trend of WTI Crude Oil