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Oil Prices Extending Losses Into a Second Day

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Oil prices fell nearly 1% on Friday, extending losses into a second day as rising production of crude comes amid a worsening COVID-19 pandemic which threatens to bring more restrictions on movement and consumption that will likely hit demand for fuel.

U.S. oil is heading for a drop of nearly 5% this week, while Brent is on track to fall more than 3%, in a second consecutive week of decline for both contracts. “The fundamentals of oil are not encouraging … as supply rises and demand prospects look bleak,” ANZ Research said in a client note. Rising crude supplies from the Organization of the Petroleum Exporting Countries (OPEC) is weighing on the market as September production rose by 160,000 barrels per day (bpd) from a month earlier, a Reuters survey showed.

The increase was mainly the result of more supplies from Libya and Iran, OPEC members that are exempt from an agreement to withhold production between OPEC and allies led by Russia – a group known as OPEC+.

TREND : BEARISH

Time                                      :           02/10/2020

Pivot                                     :           38.79

Technical View                     :           LONG ABOVE 38.99

Target                                   :           39.19, 40.11, 41.67, 42.84

Technical View                      :           SHORT BELOW 38.59

Target                                   :           38.39, 36.98, 35.91, 34.25

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