WTI Crude oil futures surged yesterday on bargain buying after testing near three month low. Oil has been hammered this week. The commodity has extended losses well under $40 per barrel as the large scaled demand compression triggered by the ongoing COVID-19 pandemic weighed on the market. Rising US and European equities put a floor in oil around $36 per barrel. The commodity rose around 3.50% in US trades to break above $38 per barrel. However, the WTI Crude futures eased in Asia to trade at $37.80 per barrel, down 0.66% on the day.
Oil futures fell in early trade on Thursday, paring overnight gains, on worries about fuel demand after data showed U.S. crude stockpiles rose last week, rather than dropping as expected, and COVID-19 cases continued to rise around the world. As coronavirus case surged in several U.S. states, the country’s crude stockpiles rose by 3 million barrels as compared with analysts’ forecasts of a draw of 1.4 million barrels in the week to Sept. 4, data from the American Petroleum Institute showed on Wednesday. The U.S. Energy Information Administration will release official weekly inventory data later on Thursday. In a further bearish sign, leading commodity traders are booking tankers to store crude oil and diesel on the water, with supply outpacing consumption, according to trading sources and shipping data. The rising stockpiles come ahead of a meeting on Sept. 17 of the market monitoring panel of the Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia, together known as OPEC+, which in August trimmed supply curbs from earlier this year on expectations demand would improve.
TREND : WEAK BEARISH
Time : 10/09/2020
Pivot : 37.49
Technical View : LONG ABOVE 37.69
Target : 37.89, 38.87, 39.72, 40.95
Technical View : SHORT BELOW 37.29
Target : 37.09, 36.39, 35.26, 34.31