It has been a quiet day for WTI crude oil as both EIA inventories and the Baker-Hughes rig count have been released to the public. However, although prices are consolidating near $48.00, traded volumes are strong. For February WTI futures, we have already seen more than 210,000 contracts change hands. All in all, participation hasn’t been too bad considering that it’s a holiday week.

On the news front, the past 24 hours has been an active period for crude oil. Here’s a look at the highlights:

Event                                                                  Actual                  Projected             Previous

API Weekly Crude Oil Stocks (Dec. 25)          -4.875M                    NA                        2.700M

EIA Weekly Crude Oil Stocks (Dec. 25)          -6.065M                -2.583M                 -0.562M

Baker-Hughes U.S. Rig Count                              267                         NA                          264

In summary, things are looking up for the global oil complex. It appears as though wintertime demand is holding strong and U.S. producers are optimistic about 2021. Despite major questions regarding COVID-19 lockdowns, vaccines, etc., this market is holding within a stone’s throw of $50.00. If you remember the negative valuations of last spring, today’s WTI pricing is truly remarkable.

WTI Crude Oil Holds The Line At $48.00

For the time being, February WTI crude oil futures are in a holding pattern. Prices remain in weekly bullish territory and appear poised to drive higher.

Overview: As we roll into 2021, the $50.00 handle is going to be a pivotal long-term technical level for WTI. Nonetheless, uncertainty regarding the future of COVID-19 and Biden administration fracking restrictions will play largely into valuations. Like is the case most of the time, we’ll just have to wait and see what happens.