WTI Crude oil futures slumped in last session on demand worries and falling US equities. The US stocks slumped with NASDAQ tanking more than 2% as US President Donald Trump and First Lady Melania Trump have tested positive for the corona virus. WTI Crude also cracked lower by around 4.50% to end just under $37 per barrel.
Global Covid-19 count remains elevated and oil has simply failed to stay afloat above $40 per barrel mark. The Organization of Petroleum Exporting Countries (OPEC) has already cut back its near-term demand outlook, and now expects demand to average 90.2 million barrels a day in 2020, down 400,000 barrels a day from its last forecast and a drop of 9.5 million barrels a day from a year ago.
Oil prices rose more than 1% on Monday, lifted by comments from doctors for U.S. President Donald Trump suggesting he could be discharged from hospital as soon as Monday, just a few days after his positive test for COVID-19 sparked widespread alarm. Prices had slumped more than 4% on Friday amid uncertainty surrounding Trump’s health, adding to concern that rising corona virus case numbers that could dampen global economic recovery. But analysts said Monday’s rebound was driven by an easing of the worst fears about Trump’s health condition, albeit clouded by some mixed signals. Meanwhile recent price increases have prompted some U.S. producers to resume drilling. U.S. energy firms this week added oil and natural gas rigs for a third week in a row for the first time since October 2018, data from Baker Hughes showed on Friday. But the rise in supplies comes at a time when China’s crude imports are slowing, which could depress Brent to $41 a barrel in fourth quarter leaving OPEC and its allies, including Russia, to face another decision on supply cuts in November.
TREND : WEAK BEARISH / SIDEWAYS
Time : 05/10/2020
Pivot : 37.67
Technical View : LONG ABOVE 37.87
Target : 38.07, 38.49, 38.76, 39.43
Technical View : SHORT BELOW 37.47
Target : 37.27, 36.58, 36.21, 35.71