Risky assets are recovering today following a massive sell-off on Friday. European indices and US futures trade higher. However, the biggest moves can be spotted on the oil market, just as it was the case on Friday. WTI plunged around 13% on Friday and is experiencing an over-5% recovery during the European morning on Monday.
New coronavirus variant - Omicron - is said to result in only mild symptoms of infection. Moreover, some reports surfaced saying that currently available vaccines may in fact be effective against Omicron. On the other hand, World Health Organization said that there is a lot of uncertainty over the effectiveness of current vaccines and treatments against Omicron. This uncertainty seems to be reflected in the OPEC decision over the week. Group of oil producers decided to delay technical meetings from Monday and Tuesday to Wednesday and Thursday. Decision meeting is still expected to take place on Thursday. This is a top event for oil traders this week as it is still unknown how OPEC will react to the Omicron situation and recent SPR release.
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Create account Try a demo Download mobile app Download mobile appA look at WTI chart (OIL.WTI) at a daily interval shows us that the price dropped below the lower limit of the Overbalance structure on Friday and the 200-session moving average. However, following a higher opening of the session today, WTI price jumped back above those 2 technical hurdles. The aforementioned moving average was tested at the start of trading today but bulls managed to defend it.
Source: xStation5
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