WTI Crude Oil Still Bullish After Hitting 13-Month High

WTI crude oil is trading bullish after touching a 13-month high as optimism over deeper supply cuts by OPEC+ countries and expectations

Arslan Butt•Tuesday, February 9, 2021•1 min read

WTI Crude Oil Still Bullish After Hitting 13-Month High

On Tuesday, WTI crude oil is trading bullish after touching a 13-month high as optimism over deeper supply cuts by OPEC+ countries and expectations for improvement in oil demand support the trend. At the time of writing, WTI crude oil is trading at around $58.37 per barrel.

OPEC and its allies have committed to maintaining deeper crude production curbs for a longer period of time, which could help offset the weakness in oil demand caused by the pandemic driven lockdowns and restrictions across several countries. The second wave of the pandemic and discovery of new strains of the virus have forced parts of Europe and Asia to reimpose lockdowns, and the OPEC+ agreement will help balance any additional weakness in oil demand caused by them.

Meanwhile, crude oil is also trending higher on the back of vaccine optimism as traders look forward to the rollout of COVID-19 vaccines supporting economic recovery and oil demand in the coming months. In addition, a weaker US dollar has also made oil more affordable for holders of other currencies, driving demand higher.

However, some analysts have cautioned that crude oil looks overbought during technical analysis and could experience a correction soon. While the outlook for the commodity is likely to improve in the medium and long term, in the near-term, oil demand continues to remain weak amid the ongoing restrictions and continued spike in cases across parts of the world.

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ABOUT THE AUTHOR See More

Arslan Butt

Index & Commodity Analyst

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.