Key Points

• Prices reach $47 despite EIA data
• Covid-19 vaccine rises optimism in the market
• OPEC comfortable with the current price trajectory

U.S. EIA data indicated massive build up in crude oil stocks for the week running up until the 4^th of December. Previously on the 27^th of November the data indicated a reading of – 0.679m signalling a drawdown in stocks. Prices remained buoyant as traders viewed it as positive for prices and it was sufficient to keep prices above the $46.00 per barrel. The latest preceding week showed a build-up in stocks with a reading of 15.189m. Despite the built up in stocks price temporarily declined but the up-trend wasn’t unsettled for long.

Riding on the back of Covid-19 vaccine optimism the energy sector is on the rise as suppliers anticipate a strong rebound in demand. The air travel is the major sector tipped to create enough demand when the global economy reopens after the vaccine has been rolled out.

Technically, prices are struggling to break the ascending resistance line and the current correction is likely to be short-lived. If bears successfully bring down prices, the immediate support region lies around the $46.00 region. Below that level, is the major ascending support line lying at the $44.50 handle.

Currently prices are trapped an ascending triangle and the room for price to continue swinging in the triangle is running out. Therefore, a price breakout is becoming increasingly overdue. The Relative Strength Index is slightly above the 50 region, thus allowing sufficient room for a bullish breakout.

Trends

Moving Average	Simple	Exponential
60	45.72 BUY	45.75 BUY
100	45.15 BUY	44.92 BUY
200	42.22 BUY	43.39 BUY

Pivot Points (Daily)

Name	S3	S2	S1	Pivot	R1	R2	R3
US-Oil	46.30	46.43	46.55	46.68	46.80	46.93	47.05
Brent-Oil	49.70	49.81	49.96	50.07	50.22	50.33	50.48
Nat-Gas	2.624	2.636	2.651	2.663	2.678	2.690	2.705

Pivot Points (Weekly)

Name	S3	S2	S1	Pivot	R1	R2	R3
US-Oil	42.39	43.67	45.18	46.46	47.97	49.25	50.76
Brent-Oil	45.51	46.80	48.48	49.77	51.45	52.74	54.42
Nat-gas	2.198	2.283	2.460	2.545	2.722	2.807	2.984