WTI is trading with modest losses around $40.50
- WTI stays in consolidation phase below $41 on Monday.
- Upbeat market mood keeps oil's losses limited at the start of the week.
- Coronavirus vaccine hopes provide a boost to sentiment.
Crude oil traded in a relatively tight range last week and the barrel of West Texas Intermediate (WTI) closed flat at $40.57. In the absence of significant fundamental drivers, the WTI continues to fluctuate in a narrow band around mid-$40s on Monday.
Coronavirus headlines continue to impact sentiment
Although the surging number of coronavirus cases globally causes concerns among investors, heightened hopes for a vaccine keeps the mood upbeat.
Earlier in the day, Pfizer announced that the coronavirus vaccine they are co-developing with BioNTech produced positive results in early phase-one and phase-two trials in Germany. Moreover, the results of the University of Oxford's vaccine trials showed that it was safe and well-tolerated.
Reflecting the upbeat market mood, which helps the risk-sensitive WTI limit its losses, major equity indexes in the US are trading in the positive territory on Monday.
Later in the week, investors will be paying close attention to the API's Weekly Crude Oil Stock and the EIA's Crude Oil Stocks Change data will be looked upon for fresh impetus.
Technical levels to watch for