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Crude Oil Futures Fell Further On Friday, as Weak Equities Pulled Oil Down

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Crude oil futures fell further on Friday as weak equities pulled the commodity down. US stocks tumbled on Friday. A good pullback was seen on hopes of continued monetary support though the DOW ended near two week low. WTI Crude oil futures slipped sharply, falling under the key $40 per barrel mark. The counter lost 4.50% to end at a five week low of $39.50 per barrel. Media reports stated that he Chinese refiners purchased heavy quantities of crude oil when prices were sharply lower and there is a hefty number of tankers at Chinese ports right now. This could weigh on oil demand from China right now. WTI Crude needs to get back above $40 per barrel to see further gains

Oil prices slipped on Friday, on track for a weekly loss, as investors’ focus shifted to lacklustre demand and ample fuel supplies, offsetting support from a weak dollar. The volume of crude arriving in China, the world’s largest crude importer, is set to slow in September after rising for five straight months as its refiners gradually digest bloated inventories, according to data on Refinitiv Eikon. In the United States, refiners awashed in diesel inventory are unlikely to boost output soon. Soft margins are likely to cap further crude rallies and we anticipate further run cuts this fall to expedite the rebalancing of product stocks.

TREND : WEAK BEARISH / SIDEWAYS

Time                                      :           07/09/2020

Pivot                                      :           39.15

Technical View                     :             LONG ABOVE 39.35

Target                                   :            39.55, 39.91, 40.21

Technical View                     :             SHORT BELOW 39.95

Target                                   :            38.75, 38.61, 38.11

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