WTI looks to build onto Wednesday’s recovery above $48 mark

• WTI consolidates the upside above $48 amid a risk-on mood.
• Imminent Brexit deal optimism boosts risk, downs US dollar.
• X-mas eve light trading could trigger volatile moves.

WTI (futures on NYMEX) is consolidating Wednesday’s 2% recovery rally from one-week lows of $46.16, now holding close to $48.50 levels.

The black gold takes advantage of the upbeat market mood, as investors flock to higher-yielding assets such as oil, in anticipation of an imminent Brexit breakthrough.

The appetite for riskier asserts is boding ill for the safe-haven US dollar, lending support to the USD-sensitive oil.

With the coronavirus vaccine progress, markets expect a faster recovery in demand for oil and its products. The same is reflected by the draw in the US crude, gasoline and distillates inventories, which renders oil-positive.

“US crude inventories fell by 562,000 barrels in the week to Dec. 18 to 499.5 million barrels, the Energy Information Administration said on Wednesday,” Reuters reports.

Looking ahead, markets will keep a close eye on the Brexit developments while supply disruptions in Nigeria will be assessed for fresh direction on the prices.

WTI technical levels