WTI Crude oil futures stayed weak after testing a five month low near $35 per barrel last week on heavy demand worries and strength in the US dollar.
Soaring global Covid-19 cases and volatile equities ahead of the US Presidential election is capping buying in oil. Further hurting the commodity was the news that giant Johan Sverdrup oilfield in Norway’s North Sea is expected to increase its oil production this quarter after the Norwegian government raised the Q4 production permits for Western Europe’s biggest producing field, a minority partner in the project, Lundin Energy, said on Friday.In its Q3 results release, Lundin, which holds 20 percent in the oilfield operated by Equinor, said that permitted production under the government-mandated production cuts were raised for the Johan Sverdrup, Edvard Grieg, and Alvheim fields, after some fields pumped less oil than allowed in Q3 due to technical issues and maintenance problems.
Oil prices slumped more than 4% on Monday to the lowest levels since May on worries a swathe of coronavirus lockdowns across Europe will weaken fuel demand, while traders braced for turbulence during the U.S. Presidential election week. Countries across Europe have reimposed lockdown measures aimed at slowing COVID-19 infection rates which have accelerated in the continent in the past month. Concerns about weakening demand and rising supplies caused oil prices to fall for a second straight month in October, with WTI falling 11% and Brent 8.5%.Rising supplies from Libya and Iraq, members of the Organization of the Petroleum Exporting Countries (OPEC) offset production cuts by other members and caused the group’s output to rise for a fourth month in October, a Reuters survey showed. OPEC and their allies including Russia, a group known as OPEC+, are cutting output by about 7.7 million barrels per day in a pact aimed at supporting prices.
TREND : BEARISH
Time : 02/11/2020
Pivot : 34.45
Technical View : LONG ABOVE 34.65
Target : 34.85, 35.41, 36.14, 36.94
Technical View : SHORT BELOW 34.25
Target : 34.05, 33.48, 32.77, 31.95