Oil prices rose in early trade on Friday, on track for a third straight week of gains, buoyed by major oil producers’ efforts to hold back output amid concerns about the economic recovery from the coronavirus pandemic. Both benchmark contracts fell around 1% on Thursday on economic concerns after weekly U.S. jobless claims came in higher than expected. Meanwhile, an internal report by the Organization of the Petroleum Exporting Countries and allies, showed the group known as OPEC+ was focused on ensuring that members who had overproduced against their commitments would cut their output, as flagged following an OPEC+ meeting on Wednesday. Reuters reported that OPEC+ found some members would need to slash output by 2.31 million barrels per day to make up for their recent oversupply. The internal report flagged demand risks, showing OPEC+ expects oil demand in 2020 to fall by 9.1 million bpd, 100,000 bpd more than in its previous forecast. The group pressed members such as Nigeria and Iraq to do more to meet their quotas after they exceeded them between May and July.
TREND : WEAK BEARISH / SIDEWAYS
Time : 21/08/2020
Pivot : 42.49
Technical View : LONG ABOVE 42.69
Target : 42.89, 43.49, 43.82, 44.67
Technical View : SHORT BELOW 42.29
Target : 42.09, 41.91, 41.16, 40.73