WTI crude oil resumes up trend today and hits as high as 49.74 so far. Oil price is lifted by news that OPEC+ is going to cap output at current levels in February. The pandemic is likely to continue to limit economic recovery for the near term, with current resurgence in cases.
Mohammad Barkindo, Secretary General of OPEC, said on Sunday that there are plenty of downside risks in crude demand in the first half, as “we are only beginning to emerge from a year of deep investment cuts, huge job losses and the worst crude oil demand destruction on record.”
For the near term, 50 psychological level should at least be breached based on current momentum. The immediate test lies in channel resistance at 51.25, which may limit upside. Though, sustained break there will confirm upside acceleration. That would open up the case for further rally to 65.43 medium term resistance next.
