WTI Crude Oil Starts Trades on Bullish Note – Market Sentiment Supports
WTI crude oil is edging higher in early trading after the decline posted in the previous session, supported by forecasts for crude
WTI crude oil is edging higher in early trading after the decline posted in the previous session, supported by forecasts for crude inventories to continue falling even as worries of a resurgence of the pandemic kept traders on edge. At the time of writing, WTI crude oil is trading at around $74.90 per barrel.
According to a recent Reuters poll, crude stockpiles across the US are expected to contract for the eighth straight week. Last week, they touched the lowest level seen since February 2020, lending hope that oil demand could have rebounded to pre-pandemic levels across the world’s largest energy consumer.
In addition to an anticipated drop in crude stockpiles, the possibility of leading oil producing nations extending supply cuts is also helping crude oil prices climb higher. Last week, OPEC and its allies were unable to come to an agreement on easing the severe production curbs; however, there is considerable uncertainty on whether they will announce plans to hike production even as COVID-19 cases climb higher across several countries.
For the current session, however, crude oil is also enjoying support from the risk-on sentiment prevalent in global financial markets after equities posted a record performance in the previous session. Although, gains remain limited as traders remain cautious about the spread of the highly contagious delta variant, especially after the WHO raised concerns about the shortage in COVID-19 vaccines for healthcare workers in some countries.
- Check out our free forex signals
- Follow the top economic events on FX Leaders economic calendar
- Trade better, discover more Forex Trading Strategies
- Open a FREE Trading Account
Related Articles
Comments
Sidebar rates
Related Posts
Save
Join 350 000+ traders receiving Free Trading Signals
Alerts
Rates
Calendar
Signals