Corona Virus
Stay Safe, FollowGuidance
Fetching Location Data…
Adesina Olumide
WTI and Brent Crude Oil

Crude oil prices dropped as much as 2% over reports revealing the number of people infected with COVID-19 virus particularly in Western Europe and the United States are growing at an exponential level, thereby triggering fears over crude demand, and also the prospect of increased supply also weighed down heavily on oil traders mind.

At the time of writing Brent crude futures was trading slightly above $41/Barrel and the U.S. West Texas Intermediate (WTI) futures dropped as expected below $40/barrel amid the rising U.S dollar index at London’s trading session on Monday.

Know where the Market is headed? Take advantage now with 

75% of retail CFD investors lose money

Over the weekend the world’s largest economy reported its highest number of new COVID-19 infections in two days while France, the EU second-largest economy posted new COVID-19 cases of around 50,000 yesterday underlining the intensity of the outbreak.

With all the prevailing macros distorting an upside move in the sensitive crude oil market, one thing remains clear, oil traders have momentarily given up on crude oil prices posting above $50/barrel at least in 2020, on the bias that the demand cycle recovery seems to be collapsing, not forgetting the aurora of geopolitical uncertainty hitting record highs.

Looking inward with Covid-19 microscope the damage done to the black fossil market becomes so very real and damaging.

However, amidst this carnage, the Saudis and Russians are stepping up their game by offering unwavering support. Taking to account Russian leader Vladimir Putin’s recent statements on his willingness to extend the current level of crude oil production cuts beyond 2020, would definitely support crude oil prices in the near term, meaning it’s very unlikely Brent crude prices trade below $35/barrel in 2020.

For a look at all of today’s economic events, check out our economic calendar.
Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Trade With A Regulated Broker

  • Your capital is at risk
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.