WTI Crude oil futures rose above the watershed $40 per barrel as the US dollar index eased and commodities stabilized. The counter currently trades at $40.47 per barrel, up 0.40% on the day.
Overall sentiments remain steady in oil. The OPEC+ production cuts and curtailments in the United States are set to help global inventories to continue drawing down for the rest of the year and most of next year, resulting in a relatively balanced market by the end of 2021, the US Energy Information Administration (EIA) said in a latest update. Good fund buying and a possible pullback in equities after recent tumble could also benefit oil.
Oil prices were little changed on Friday but on track for a weekly fall on concerns that a global resurgence of COVID-19 infections will constrain fuel demand, while the likely return of exports from Libya will add to supply. Brent is heading for a drop of nearly 3% this week, while U.S. crude is on track for a decline of almost 2%. Both benchmarks are also on track for a monthly decline, which would be the first for Brent in six months. The prospect of the return of Libyan barrels to the market is adding to the bearish sentiment.In the United States, which has the highest death toll from the COVID-19 crisis and is the world’s biggest oil consumer, unemployment claims unexpectedly rose last week suggesting an economic recovery is flailing and pushing down fuel demand. In other parts of the world, daily increases of coronavirus infections are hitting records and new restrictions are being put in place that will likely limit demand for travel and fuel.
TREND : WEAK BULLISH
Time : 25/09/2020
Pivot : 40.14
Technical View : LONG ABOVE 40.34
Target : 40.54, 41.13, 41.51, 42.35
Technical View : SHORT BELOW 39.94
Target : 39.74, 39.51, 38.77, 38.29