WTI: Mildly bid around mid-$48.00s with eyes on OPEC+ meeting

• WTI attacks the upper band of short-term trading range.
• OPEC’s Barkindo sounds cautiously optimistic ahead of OPEC+ meet, risk sentiment stays mixed.
• China’s Caixin Manufacturing PMI can offer immediate direction.

WTI wavers around $48.50, eases from an intraday high of $48.58 now, during Monday’s Asian session. In doing so, the energy benchmark attacks the high of a short-term trading range above $47.60. Comments OPEC Secretary-General Mohammad Barkindo, coupled with US dollar weakness, could be traced for the black gold’s positive move while an absence of major catalysts and cautious sentiment ahead of the key event keep the commodity prices sideways.

During the 47th meeting of the Joint Technical Committee (JTC), OPEC’s Barkindo cited expected recovery in the global economy from the coronavirus (COVID-19) as the key driver of likely upbeat energy demand. However, mixed concerns were raised for oil stocks despite the latest depletion.

Read: OPEC’s Barkindo: Oil inventory levels show positive momentum but remain stubbornly high

Although no major changes are likely to roll out in today’s meeting of the Organization of the Petroleum Exporting Countries (OPEC) and Russia, mostly known as OPEC+, hints for further rolling back the production cuts will be eyed for near-term direction.

Other than the OPEC headlines, second readings of December’s activity numbers and China’s Caixin Manufacturing PMI, expected to reprint 54.9 level, could also entertain the oil traders. Herein, the bears will look for signs of beating the economic recovery hopes.

It’s worth mentioning that chatters relating to the US covid stimulus paycheck are likely to offer an additional filter to the oil prices. Herein, the latest re-election of Nancy Pelosi as the US House Speaker suggests an easy path to the COVID-19 aid package. Though, Georgia’s runoff is left and becomes the key considering the thin difference between Republicans and Democrats to take the Senate.

Technical analysis

A falling trend line from December 18, currently around $48.60, guards WTI’s immediate upside momentum towards the multi-month high flashed in December 2020 near $49.45. Meanwhile, oil sellers aren’t expected to enter before witnessing a break of an ascending support line from December 02, at $47.50 now.