WTI Crude oil futures broke above $41 per barrel but stayed cautious as US stocks extended losses on weak tech counters. Oil stabilized around two week high as a new Tropical Storm emerged in the Gulf of Mexico off the coast of Mexico and energy firms continued to reopen offshore crude oil production shut just days earlier on Tropical storm Sally. Oil has been witnessing good traction and the break above the key $40 per barrel has emerged despite weakness in US equities.
Oil prices fell on Monday on the potential return of oil output from Libya even as rising coronavirus cases add to worries about global demand, although losses were limited as a new tropical storm heads for the U.S. Gulf of Mexico. Libya’s National Oil Corp (NOC) lifted force majeure on what it deemed secure oil ports and facilities on Saturday, but said the measure would remain in place for facilities where fighters remain. The resurgence in COVID-19 infections around the world has seen many governments halt the easing of restrictions. This has weighed on demand in Europe and the U.S. Britain is at a tipping point on COVID-19, health minister Matt Hancock said on Sunday, warning that a second national lockdown could be imposed if people don’t follow government rules designed to stop the spread of the virus. Oil and gas producers had been restarting their offshore operations over the weekend after being disrupted by Sally. Some 17% of U.S. Gulf of Mexico offshore oil production and nearly 13% of natural gas output was offline on Saturday from Hurricane Sally’s waves and winds.
TREND : WEAK BEARISH / SIDEWAYS
Time : 21/09/2020
Pivot : 41.21
Technical View : LONG ABOVE 41.41
Target : 41.61, 41.79, 41.96, 42.39
Technical View : SHORT BELOW 41.01
Target : 40.81, 40.46, 40.19