Crude Oil Traders Await Clearer Signals, in Spite of Hurricane LauraCrude oil prices remained relatively stable at the early hours of Thursday London’s trading session. Crude oil traders remain wary of taking long bets even as U.S oil producers suspend offshore production ahead of a massive hurricane storm in the Gulf of Mexico.
Brent crude prices are presently trading above $46 after it recently touched a new five-month high.
The black liquid hydrocarbon has not been able to fully breakout from its present resistance level, showing that it’s most likely that Brent crude could pull back to the $45 price support level if the impact of the hurricane storm is less damaging than anticipated.
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The present price level will prove to be critical as a strong breakout above this price level could potentially push the hydrocarbon within the $50 mark.
The recent storm threat has affected the energy market less than expected as crude oil stockpiles remain on the upside due to the COVID-19 pandemic’s hit on energy demand, and growing uncertainty over the pace of the global economic growth.
However, crude oil bulls have been to keep the price of Brent crude up by almost $2/barrel this week, breaching the $46 price level helped by suspension in oil production around the Gulf of Mexico as Hurricane Laura passes through and now threatens oil refineries at that area.
Crude oil prices continue to trade around the $44-$46 range, as crude oil traders remain relatively cautious over growing concerns on energy demand rebalancing as the COVID-19 pandemic continue to disrupt the global economy negatively.
In addition, it should be noted that this abiotic factor has been bullish for the energy derivative. The recent crude oil prices seem to be choppy above the $46 price level as crude oil traders await stronger macros suggesting traders remain nervous.
Possibly profit-taking could also keep the price of Brent crude around the $44-$45 range in the near time as traders anticipate the gradual return of offshore production in the Gulf of Mexico meaning a bearish bias for crude oil prices in the near term.