Oil Bears Hold Sway as COVID-19 Stages a Big Comeback

At the time of writing this report the British-based oil contract Brent crude had lost more than a percent, as it traded at around $68 a barrel, taking to account it settled 1.1% lower yesterday after briefly breaking above $70 a barrel.

Also, the U.S. West Texas Intermediate futures lost about 1.2%, as it traded around $64.72 a barrel.

Oil bears are presently clawing the energy market pretty hard, on macros from the American Petroleum Institute that further disclosed oil stockpiles in the world’s largest economy surged by 620,000 barrels for the week that ended on May 14, hinting that the U.S economy might not be out of the wood yet despite record rollout of COVID-19 vaccines.

Adding credence to such bearish sentiments are price patterns pointing oil bulls might be suffering from exhaustion after failing to break above the $70 price levels on Tuesday as it moved downward strongly to the $68 a price levels as rising COVID-19 caseloads in India, Taiwan, Vietnam, and Thailand, prompting a new wave of lockdowns.

If situations go from bad to worse oil bears will target visiting $65 a barrel once again followed by $62.30 price levels as main negative targets for the midterm.

Although energy experts envisage that present current oil prices might further boost oil purchases as China’s accelerated crude oil builds could pause arbitrarily if the black viscous hydrocarbon breaks above $70 a barrel.