WTI oil pulls back from eight-month highs above $46

• WTI prices rally 30% in November to reach levels past $46.
• EIA has reported an unexpected decline in US oil stockpiles.

Front-month WTI futures have traded higher for the sixth consecutive session on Wednesday, popping up to levels above $46 for the first time since early March, before pulling back to $45.75 area

Oil appreciates after EIA’s report

The US Energy Information Administration reported that US oil stockpiles declined by 754,000 barrels, against market expectations of a 127,000 increase. This news has sent the price of the West Texas Intermediate barrel to $46.25 highs, levels not seen since the first wave of the pandemic gripped global economy in March

Beyond that, oil prices have rallied nearly 30% in November, boosted by a combination of factors. First of all, the progress of the diverse COVID-19 vaccines that have reported test results this month has boosted expectations of a coronavirus cure available in the next months, easing concerns about the weak outlook for oil demand.

In the US, the market is anticipating a fiscal stimulus package by Biden’s administration and further monetary easing action by the Federal Reserve in order to shore up the US economy.

Finally, hopes that the OPEC+ will finally sign a deal to extend output cuts beyond January 2021 in a key oil producers’ meeting due on November 30, is contributing to the oil rally.

Technical levels to watch