Crude oil jumped in last session with steady buying emerged in WTI futures above the break of $41 per barrel. The commodity hit a seven week high of $41.88 per barrel. However, oil slipped today on broad demand worries and trades at $41.48 per barrel, down 0.53% on the day. Crude Oil prices are not expected to rise much next year, and will stay in the $40-50 a barrel range, putting additional pressure on the oil exporters in the Middle East, the International Monetary Fund (IMF) said on Monday in its update on the Regional Economic Outlook for the Middle East and Central Asia. In the near and medium term, oversupply and large inventories remain concerns, while demand continues to be dampened by low air traffic volume (despite recovering road traffic). Oil futures curves indicate that prices are expected to increase toward $48 a barrel in the medium term (from $41 for 2020), remaining some 25% below the 2019 average, the IMF noted.
Oil prices fell on Wednesday after a surprise climb in U.S. crude stockpiles added to concerns about a global supply glut as a spike in global COVID-19 cases fuels demand fears and production returns in Libya. Crude inventories rose by 584,000 barrels in the week to Oct. 16 to about 490.6 million barrels, data from industry group the American Petroleum Institute showed, compared with analysts’ expectations in a Reuters poll for a draw of 1 million barrels. Adding to pressure, worldwide COVID-19 cases crossed 40 million on Tuesday, with some parts of Europe imposing renewed lockdown measures. On the supply side, the Organization of the Petroleum Exporting Countries (OPEC) and its allies, together known as OPEC+, plan on scaling back their production cuts in January from a current 7.7 million barrels per day (bpd) to roughly 5.7 million bpd in January.
TREND : BULLISH
Time : 21/10/2020
Pivot : 41.26
Technical View : LONG ABOVE 41.46
Target : 41.66, 42.21, 42.73, 43.53
Technical View : SHORT BELOW 41.06
Target : 40.86, 40.49, 39.79, 39.17