WTI Crude oil spiked more than 2.5% yesterday in US session as a bounce from three week low extended. The worst of the oil market is behind us, Saudi Arabia’s Energy Minister Prince Abdulaziz bin Salman said on Monday at CERAWeek’s India Energy Forum. Oil also tracked trajectory of Tropical Storm Zeta. The governor of Louisiana declared a state of emergency as Zeta surged toward the Gulf Coast in the state. Zeta threatens to bring life-threatening storm surge along portions of the northern Gulf Coast by late Wednesday, according to the National Hurricane Center. The storm was expected to regain strength as it moved over the Gulf of Mexico.
Oil prices slid more than 1 percent on Wednesday
Oil prices slid more than 1 percent on Wednesday, paring the previous day’s gains, as a jump in U.S. crude inventories and surging COVID-19 cases raised fears of an oversupply of oil and weak fuel demand. U.S. crude oil and gasoline stocks rose last week, data from industry group the American Petroleum Institute showed, with crude inventories rising by 4.6 million barrels to about 495.2 million barrels, against analysts’ expectations in a Reuters poll for a build of 1.2 million barrels. Energy firms and ports along the U.S. Gulf Coast prepared on Tuesday for another test as Zeta, the 11th hurricane of the season, entered the Gulf of Mexico. Adding to pressure, Libya’s production should rebound to 1 million bpd in coming weeks, complicating efforts by other OPEC members and allies to restrict output.
TREND : WEAK BEARISH
Time : 28/10/2020
Pivot : 39.01
Technical View : LONG ABOVE 39.21
Target : 39.41, 39.64, 40.36, 40.85
Technical View : SHORT BELOW 38.81
Target : 38.61, 38.03, 37.64, 36.82