Latest Oil Barometer resides in White House

Both major benchmarks broke above their key support levels as Brent crude prices surge pass the $40/ barrel support line, to hover around $41/Barrel, at the time this report was drafted U.S. West Texas Intermediate prices also breached above its critical support level of $38.50/barrel, as another storm lingers around the Gulf of Mexico, raising concerns, on oil production being distorted in the near term.

It’s important to note that in Q3, 2020 crude oil prices have paused below the 20-month exponential moving average which is now at around $43/Barrel, looking more into this prevailing price action means, for the bullish momentum to remain on course, oil traders will have to break the critical resistance area of $43.50/ barrel.

Sequel to this recent bullish run, oil traders won’t forget in a hurry, the influence President Trump has on crude oil prices, with the black liquid fossil losing over 4% last Friday amid growing uncertainty surrounding Trump’s health, meaning that Donald’s Trump health status has become the latest oil barometer, traders are watching closely for future guidance, in the ever changing oil market.

On the abiotic side, a positive macro triggering the bulls to keep up with their pace, is another hurricane storm, lingering around the Gulf of Mexico, with many oil workers evacuated from their oil platforms as tropical storm Delta heads toward Louisiana and Florida, raising concern that these oil rigs might not maintain optimal capacity in Q4, 2020, as further kept the bulls up to support crude oil prices.

The bulls seem not to be short of positive fundamentals as ongoing talks by Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin on the long-overdue stimulus package is expected to continue later today, would likely keep the bulls affirmative on hold their present gains.

Therefore it’s fair to say the bulls are now in charge, at least in the near term.