The good times for oil are continuing with risk-on is still dominating. There is widespread optimism on markets even if in early trading today we have seen some investors taking profit after the large gains of the last few days. Investors are now seeing Covid-19 matter as something that will not affect global oil demand in the long term. This has been reflected in the price in the last few days, as WTI rebounded to $42, while Brent is trading above $44.
From a technical point of view, the scenario remains bullish, with WTI clearing resistance at $41.50 and now closing in on the August high at $43.50, which represents the next key resistance for oil.
