WTI Crude Oil Gains More Than 1% Over Profit Taking

WTI crude oil prices have witnessed a sharp climb, gaining over 1% early on Tuesday as investors who held short positions indulged in profit

Arslan Butt•Tuesday, February 11, 2020•1 min read

WTI Crude Oil Gains More Than 1% Over Profit Taking

WTI crude oil prices have witnessed a sharp climb, gaining over 1% early on Tuesday as investors who held short positions indulged in profit taking. At the time of writing, WTI crude oil is trading at around $50.15 per barrel.

However, the sentiment in oil markets still remains wary over the fears of the coronavirus outbreak damping the demand for oil in China, the world’s largest energy consumer. This has caused WTI crude oil to slip to a crucial technical support level, driving those who went short on oil to book profits on their trades.

So far, China has confirmed over 42,000 cases of coronavirus while the death toll has exceeded 1,000. On Monday, the WHO cautioned against the outbreak spreading to countries outside China being a cause for concern. 24 countries worldwide have confirmed cases and the virus has already started impacting other economies, including that of Japan and Singapore.

This week, crude oil is expected to face additional pressure over a predicted rise in crude inventories in the US over the previous week. According to a Reuters poll, crude stockpiles in the US are expected to have increased by 2.9 million barrels during the previous week, making it the third consecutive week of gains in US crude inventories.

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ABOUT THE AUTHOR See More

Arslan Butt

Lead Markets Analyst – Multi-Asset (FX, Commodities, Crypto)

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.