The major crude oil benchmarks, which include Brent, ended W / W slightly lower, losing 0.2% as oil traders worried about the London-based oil contract, demand could tighten on the macro indicating that the number of COVID -19 cases is exploding at an alarming rate in major European countries. countries like Germany and the UK.
However, the well-known American oil-grade West Texas Intermediate ended quite impressively with a 0.7% gain, as recent US oil inventories put on an increase in demand for oil, coupled with in the bias, the Republicans would pass a form of stimulus agreement in the smoothing. the world’s largest fragile economy on sentiments showing the US election is fast approaching.
On the parabolic level, black liquid hydrocarbon faces intense short-term pressure, on the bias revealing that oil bulls in recent weeks appear to be suffering momentarily from exhaustion, whenever they approach their price levels of. Key immediate resistance coupled with another major bias that reveals low chances of gasoline. demand / supply levels taking shape in the pre-COVID-19 era, on the feeling that major oil producers may not be able to maintain their commitments in line with the current reduction in oil production due to their low incomes and their high budget deficits, as most depend on the black fossil for their economic development.
Despite the prevailing macro demand for energy, many experts do not see crude prices rise above the support level of $ 35 / bbl, as the world’s leading pharmaceutical company Pfizer announced that its COVID-19 vaccine would be ready before the end of the year. outside.
A properly registered and readily available COVID-19 vaccine at that time could propel crude oil prices close to $ 45 / barrel and, most importantly, restore the kind of volatility seen in the pre-COVID-19 era.
That said, Brent prices still show impressive determination around the $ 40 / bbl price points against a background of profit taking seen at around $ 43- $ 43.20 on cyclical price levels showing the Oil traders exposed by high geopolitical uncertainty.
It’s critical to remember that oil traders are somehow more focused, in the near term, on the likely winner of the U.S. election, on feeling that President Trump’s re-election will be a nice macro for the black market in fossils as his chances for re-election diminish.