WTI Crude oil futures raced up after recent losses as US markets stayed supported amid heavy volatility ahead of the Presidential Election. The commodity added nearly 2% yesterday and edged up further today to approach $37 per barrel after testing near five month low. Oil has been slippery in last few days as a break under critical $40 per barrel hurt the mood and volatile equities capped any buying.
Oil prices slipped on Tuesday as worries about soaring COVID-19 cases, rapidly rising Libyan supply and U.S election jitters outweighed growing hopes that major producers would hold back on planned production increases. Italy is the latest country in Europe to tighten COVID-19 restrictions, including limiting travel between the worst-hit regions and imposing a nightly curfew, which will limit fuel demand. Benchmark prices, down sharply over the past week, had a brief reprieve on Monday, rising nearly 3% after Russia’s oil minister held talks with domestic oil companies to delay crude output increases planned for January. Russian Energy Minister Alexander Novak met with the top managers of Russian oil companies on Monday to discuss a possible extension of oil output restrictions into 2021, sources told Reuters. With soaring cases of COVID-19 in Europe and the United States and the recent swift return of oil supply from Libya following an eight-month blockade, Saudi Arabia and Russia are in favour of delaying the output increase in January. OPEC and their allies including Russia, a group known as OPEC+, are cutting output by about 7.7 million barrels per day in a pact aimed at supporting prices.
TREND : WEAK BULLISH / SIDEWAYS
Time : 03/11/2020
Pivot : 36.06
Technical View : LONG ABOVE 36.26
Target : 36.46, 38.18, 39.34, 41.31
Technical View : SHORT BELOW 35.86
Target : 35.66, 34.65, 32.78, 31.52