Oil Bears Claw Back, Over Viral Disruptions at Key International MarketsCrude oil prices suffered significant losses in the early hours of Monday over fears that energy demand is being surprised by the rising COVID-19 caseloads at key international markets that include India and Japan.
At the time of writing this report, Brent crude bulls’ pullback to the support level of $65 a barrel, and the United States crude oil benchmark, drifted to the $62 a barrel price levels.
Both West Texas Intermediate and Brent crude futures however remained above the $60 mark, suggesting the bullish rally was still much in play.
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The black viscous derivative has gained about 30% this year alone but stalled since mid-March over the resurging COVID19 pandemic creeping back to major headlines.
Current price patterns reveal oil bulls seem exhausted breaking over $65 a barrel price level with heightened concerns on surging number of COVID-19 caseloads at important crude oil markets especially in India, that presently ranks as the world’s third-biggest oil importer, having its infection rates now nearing 17 million as of April 26, according to Johns Hopkins University data.
Such macros, kept oil bears back on center stage Crude Oil market despite the bullish statement from the International Energy Agency (IEA) anticipating that global energy demand will improve this year, but it looks WTI bulls are having all to fight for, with $62.50 a barrel proving to a be a massive resistance.
In the near term, energy experts further anticipate crude oil markets might exhibit more range-bound moves that oil traders could take advantage of, if they were only willing to trade shorter-term charts.
That being said, a number of energy experts forecast global oil demand should return to pre-COVID-19 pandemic levels before the end of 2021 if not sooner, with the Chinese and American economies taking a pretty good shape, it’s highly unlikely for oil prices to breach below the $55 a barrel price levels except OPEC+ shocks market participants by changing their status quo.