Crude Oil Prices Struggling from Q1 Profit-Taking HangoverOil prices stayed relatively firm at a mid-week trading session in London after gaining over 1% on Tuesday, amid strong economic data report from the world’s leading producer of Crude oil (U.S.A).
Oil traders are now feeling more hopeful about energy demand recovery taking a much better shape despite recent lockdowns observed in Western Europe.
Recent macros, from the world’s leading economic juggernauts, reveal the U.S March data printed services activity hitting a record high, with an echo of such result in the Chinese services sector, thereby triggering oil bulls in keeping Brent crude prices above $62 a barrel.
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As the ravaging Covid-19 virus onslaughts continue raising its ugly head again globally, oil traders are currently discounting such negative narrative amid the upcoming summer travel boom that could boost energy demand momentarily and maintaining oil prices at least above the $60 a barrel mark.
Recent price actions however reveal the black viscous hydrocarbon faces more headwinds at the start of Q2 on the bias that oil traders are still struggling from the profit-taking hangover as crude oil bears claw deep from $70 a barrel triggering a cascade of profit-taking after a long bullish rally.
Having said that, oil bulls haven’t yet gathered enough gas to break above $60 a barrel in the case of West Texas Intermediate Futures with the resurgence of the COVID-19 virus presently giving oil traders nightmare.
It is fair to say traders may find comfort buying from the dips knowing full well that the oil cartel is closely monitoring the energy market via their monthly meetings, meaning there is little doubt on OPEC+ stepping to support oil prices if fundamentals deteriorate.