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Adesina Olumide
WTI Brent Crude Oil

American Petroleum Institute (API) revealed a larger than expected drop in U.S crude oil stockpiles for the week to August 7, with an actual drop of 4.4 million barrel versus a 3.2-million-barrel predicted earlier.

Crude oil traders in recent days continue to monitor the global financial markets, on-demand concerns, as COVID-19 resurgence, continues to make energy traders a bit neutral on taking more bullish positions.

Although the recent API report seems to have temporarily stopped the recent downward trend in crude oil prices, Crude oil traders remain wary on the medium-term horizon because of high geopolitical uncertainty around the world; even as the number of new COVID-19 caseloads in the world’s largest economy plunge.

But what seems to be a major concern among major energy players are fears of prolonged unemployment and its consequences, which might continue to pull back the price of crude oil in the medium term.

Crude oil Bulls will face obstacles pushing crude oil prices higher if global employment data do not return closer to pre-COVID-19 levels.

But for now, Crude oil traders are going bullish on the recent announcement made by Russia that it has registered a Covid-19 vaccine, even though some medical experts have their reservations on the Russian COVID-19 vaccine.

Brent crude contract is most likely to remain around the $43-$45 price level in the coming days. Recent changes in sentiment among crude oil traders could push the price higher despite the fact traders remain wary in the mid-term.

In addition, as the calendar turns through to the middle of August, it expected that the ongoing improvement in global economic data especially, from China and the United States will help support Brent crude price above $40 coupled with OPEC + production compliance.

For a look at all of today’s economic events, check out our economic calendar.
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