Crude Oil Bulls Out of Gas, In Spite of Present Prevailing Macros

Crude oil prices remained relatively unchanged at Asia’s trading session.

This calm volatility in the energy market was triggered as hurricane Laura raced past major oil installations in Louisiana and Texas without causing any serious damage, making crude oil prices unable to breakout from its present price range.

Crude oil bulls in the past few weeks have been roaring hard to push the price of the black hydrocarbon upward following yet another upside rejection from the $46 price resistance level.

Taking a deeper look at Brent crude price pattern reveals that despite the lack of the present upside momentum, crude oil bulls still remain in control as the energy derivative trades above the $44 level in the near term.

Brent crude Bulls remains resilient towards the $43.50-$44.5 support price level, however, price action remains weak above the $45 price level.

In addition, Hurricane storm surprisingly couldn’t damage America’s offshore oil production infrastructure, which said, it’s not shocking to see crude oil recent bullish run tamed even after the hurricane storm damage assessment continues.

Also, it should also be noted that while the Energy Information Administration recently reported an upsurge in both oil and gasoline stockpiles at the world’s largest economy, the recent weakness in the greenback, and the likely resumption of educational activities, next month is expected to keep crude oil price above its present levels in the mid-term.

Crude Traders, however continue to be wary whenever the energy derivative tries to breakout higher, on the bearish bias that, the northern hemisphere is moving closer to winter, which could trigger an upsurge in viral infections and slow down energy demand rebalancing.

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