Crude Oil Prices Rally Up in Spite of Low Volatility

Crude oil traders have been able to keep its bullish run. However it seems to be out of gas when approaching the $46 price levels as its price peaked at $46.23 a barrel on Aug. 5, the highest level since March 2020.

Crude oil prices continue to be range-bound making Crude oil traders more cautious in taking more bullish positions, as the major headlines which include the resurgence of COVID-19 and high geopolitical uncertainty draw down the present fragile energy demand in play.

Crude oil traders remain snared between the often shifting short-term health risk triggered oscillations and more bullish longer-term dynamics.

Although a weaker greenback in prospect, keep the outlook for oil prices increasingly positive, supported by a procession of improving economic data coming from emerged markets line U.S and China.

Crude oil volatility is still likely to remain in the near time, as crude oil bulls don’t have enough gas to breach the present critical resistance level in the short term.

As always, the focus remains on the short term rebalancing of energy demand as the supply/demand dynamic remains a critical concern among major energy players.

This concern puts the price of crude oil skewed to the downside, given that rising supply and demand uncertainty seems to keep crude oil prices capped.

However renewed hopes on COVID-19 vaccine, an impressive economic data from major financial markets, and the “back to school” scheduled to start next month, gives a strong case for crude oil bulls in the medium and longer-term outlook pointing to a tightening market and higher oil prices.