Investors are still buying every dip in the price of oil. Both major benchmarks, WTI and Brent, are in a clear bullish trend, as investors are betting on a fast economic recovery once the vaccine allows restrictions to ease. Furthermore, any news on more fiscal or monetary stimulus will generate fresh optimism and trigger a new rally.
From a technical point of view, WTI is testing the strength of the resistance placed at $58.40-$58.50, while we have a similar scenario on Brent, but with the level at $61. A clear climb above these thresholds could open space for further recoveries. Vice versa, prices could pause for breath after the rally of the last few trading sessions.
