WTI Crude oil surged sharply as fears of supply disruptions amid a strike in Norway’s energy industry and positive cues from US equities supported sentiments. Media reports also stated that a tropical storm forecast on a path toward the US gulf coast. WTI Crude jumped above $40 per barrel, adding more than 6% on the day.
US stocks saw impressive surge as positive reports about President Donald Trump’s health boosted the sentiments. US economic data also supported oil. Activity in the US service sector grew at a faster rate in the month of September, according to a report released by the Institute for Supply Management on Monday. The ISM said its services PMI rose edged up to 57.8 in September from 56.9 in August, with a reading above 50 indicating growth in the service sector.
Oil prices edged higher in early trade on Tuesday
Oil prices edged higher in early trade on Tuesday after U.S. President Donald Trump returned to the White House from hospital after being admitted for treatment for COVID-19 last Friday, while another storm brewed in the U.S. Gulf of Mexico. Prices fell sharply last Friday when Trump went into hospital, then climbed more than 5% on Monday after he said he would return to the White House and as hopes grew that a deal could be agreed for a U.S. economic stimulus package to counter the impact of the coronavirus pandemic. An expanding strike by workers in Norway, which shut six offshore oil and gas fields, and the evacuation of oil platforms in the U.S. Gulf of Mexico ahead of Tropical Storm Delta heading toward Louisiana and Florida also helped support prices. The Norway strike will cut the country’s total output capacity by just over 330,000 barrels of oil equivalent per day, or about 8% of total production, according to the Norwegian Oil and Gas Association.
TREND : WEAK BEARISH
Time : 06/10/2020
Pivot : 38.87
Technical View : LONG ABOVE 39.07
Target : 39.27, 40.31, 41.03, 42.31
Technical View : SHORT BELOW 38.67
Target : 38.47, 37.81, 36.71, 35.88