WTI Crude oil extended a rebound from recent five month lows last week as energy major Saudi Aramco noted that the third quarter of 2020 saw early signs of a recovery in global energy markets as some governments across the world eased COVID19 related restrictions, providing stimulus for improved economic activity. However, a renewed wave of lockdowns in Europe and persistently high cases count globally in first week of November capped the upside and the commodity dropped sharply after approaching near $40 per barrel mark and took oil near $37 per barrel.
Meanwhile, the US crude oil stocks fell sharply last week, the Energy Information Administration (EIA) said on Wednesday. Crude inventories fell by 8 million barrels in the week to October 30th. US Crude production fell 600,000 barrels per day to 10.5 million bpd last week, the EIA said. Crude oil stocks at the Cushing, Oklahoma, delivery hub for US crude futures rose by 936,000 barrels, EIA said. US Refinery crude runs rose by 164,000 bpd and refinery utilization rates rose by 0.7 percentage point. Gasoline stocks rose by 1.5 million barrels while Distillate stockpiles, which include diesel and heating oil, fell by 1.6 million barrels.
Oil prices gained more than 2% on Monday
Oil prices gained more than 2% on Monday, with Brent futures rising above $40 a barrel, after Joe Biden clinched the U.S. presidency and buoyed risk appetite, offsetting worries about impact on fuel demand from the worsening coronavirus pandemic. U.S. President-elect Biden and his team are working on tackling the worsening health crisis. The United States became the first nation worldwide since the pandemic began to surpass 10 million COVID-19 infections, according to a Reuters. U.S. oil production is set to climb as producers are tapping into a backlog of drilled wells left uncompleted (DUCs) to boost output. The number of operating oil and gas rigs in the United States rose for an eighth week last week, according to Baker Hughes.
TREND : WEAK BULLISH
Time : 09/11/2020
Pivot : 37.89
Technical View : LONG ABOVE 38.09
Target : 38.29, 39.77, 39.15, 39.88
Technical View : SHORT BELOW 37.69
Target : 37.49, 37.26, 36.63, 36.15