Crude oil saw mixed movement in last session but sentiments were mostly supported. Economic cues were good as well. The existing home sales in the US climbed to their highest level in nearly fourteen years in the month of August, according to a report released by the National Association of Realtors on Tuesday. NAR said existing home sales rose 2.4% to an annual rate of 6.000 million in August after skyrocketing by 24.7% to a rate of 5.860 million in July. The US median existing-home price for all housing types in August was $310,600, up 11.4% from $278,800 in August of 2019.
The Eurozone consumer confidence rose in September to its highest level in six months, preliminary data from the European Commission showed on Tuesday. The flash consumer confidence index climbed to -13.9 from -14.7 in August. The corresponding index for EU rose to -14.9 from -15.5 in August. That is also the highest since March, when the coronavirus, or Covid-19, pandemic was just starting to spread in the region.
Oil is likely to see choppy moves ahead of the weekly inventories data from the US Energy Information Administration tonight. WTI Crude currently quotes at $39.45 per barrel, down 0.80% on the day.
Oil prices fell on Wednesday
Oil prices fell on Wednesday after an industry group reported a rise in U.S. crude inventories against expectations for a decline, adding to worries about demand that led to a steep selloff earlier in the week. Surging cases of coronavirus infections in countries including France and Spain, along with the likelihood of more restrictions in Britain have renewed worries about fuel demand, just as more supply may come onto the market from Libya. In the United States, where the death toll from COVID-19 has passed 200,000, the world’s highest, crude oil inventories rose by 691,000 barrels in the week to Sept. 18, according to industry data, compared with analysts’ forecasts for a drop of 2.3 million barrels. Still, this year, “world oil demand will be down by more than 10% on the year to around 90 million barrels per day (bpd) due to the COVID-19 crisis,” Eurasia Group said in a note. In Libya, the National Oil Company expects oil output to rise to more than a quarter of a million barrels per day (bpd) by next week.
TREND : WEAK BEARISH / SIDEWAYS
Time : 23/09/2020
Pivot : 39.61
Technical View : LONG ABOVE 39.81
Target : 40.01, 40.18, 40.72, 41.14
Technical View : SHORT BELOW 39.41
Target : 39.21, 38.82, 38.51, 37.86