Oil prices fell in early trade on Tuesday on concerns about fuel demand growth as a fresh wave of COVID-19 infections around the world sparks tighter lockdowns just as major producers ramp up output. The slide comes after WTI rose 1.8% and Brent climbed 1.5% on Monday on better-than-expected data on manufacturing activity in Asia, Europe and the United States showing factories were emerging from the worst of the early coronavirus pandemic impact.
There’s still quite a bit of evidence of the oil demand recovery stalling in quite a few markets with a resurgence of COVID-19. Denting fuel demand, cities from Manila to Melbourne are tightening lockdowns to battle new infections, while Norway has stopped cruise ship traffic in the latest European travel alarm. At the same time producers in the Organization of the Petroleum Exporting Countries (OPEC) and its allies, together known as OPEC+, are stepping up output this month, adding around 1.5 million barrels a day of supply. U.S. producers also plan to restart shut-in production and inventories remain near historical highs.
TREND : WEAK BULLISH
Time : 04/08/2020
Pivot : 40.49
Technical View : LONG ABOVE 40.69
Target : 40.89, 41.56, 42.21, 43.21