WTI Crude oil extended a rebound from recent five month lows 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. The demand for crude started to rise, which was reflected in stronger crude oil prices, compared to the previous quarter. Saudi Aramco’s net profit fell 44.6% in the third quarter of 2020 compared to the same period last year, reflecting continued damage to oil demand and prices from the global coronavirus pandemic. However, the optimistic comments on demand turnaround supported the commodity amid soaring US equities and WTI Crude oil futures surged more than 2% on the day. The commodity added another 2.34% to trade at $38.55 per barrel today.
U.S. oil prices jumped more than 2% on Wednesday after industry data showed crude inventories in the United States dropped sharply and as investors awaited results from the tumultuous presidential election. Oil prices dropped more than 10% last week with rising corona virus cases around the world and more restrictions on movement hitting demand prospects. U.S. oil has nearly recouped those losses in three days of gains this week in the run-up to the election.Crude stockpiles fell by 8 million barrels last week to about 487 million barrels, the American Petroleum Institute showed on Tuesday. That contrasted with analysts’ expectations in a Reuters poll for an increase of 890,000 barrels. More lockdowns could put a cap on oil price gains as Italy, Norway and Hungary tightened COVID-19 restrictions, following the UK, France and other countries. Supporting prices, OPEC member Algeria backed deferring a planned increase in OPEC+ oil output from January and Russia’s energy minister raised the prospect with the country’s oil producers.
TREND : WEAK BULLISH
Time : 04/11/2020
Pivot : 37.89
Technical View : LONG ABOVE 38.09
Target : 38.29, 39.36, 40.11, 41.43
Technical View : SHORT BELOW 37.69
Target : 37.49, 36.89, 35.67, 34.82