Oil Bulls Run Halted by President Trump’s Tweet

U.S. West Texas Intermediate (WTI) and Brent crude (LCOc1) futures prices were down more than 1%, after both major benchmarks gained over 3% at U.S trading session on Tuesday

Oil traders, are also observing the health status of the world’s most powerful political leader, as he still remains treated for COVID-19 infection, and the bearish bias got strengthened when he announced via his twitter handle, he was terminating discussion with the opposition party on an economic aid deal for his COVID-19-hit economy with the United States presidential election only weeks away.

The bears are now taking charge, as the prevailing challenge on-demand rebalancing came to bear when recent statistics from the American Petroleum Institute revealed U.S. crude oil inventories gained by 951,000 barrels last week – more than anticipated by energy analysts.

However, the selling pressure presently occurring at the oil market was curbed as major oil companies around the Gulf of Mexico were battling hard to secure their offshore oil production platforms as Hurricane Delta took sway on U.S. oil output around the vital energy hub in the American continent, which is responsible for about 17% of total U.S. crude oil production

In addition, oil prices are still holding a large part of Tuesday’s gain, as the latest oil barometer, President Trump got discharge from Walter Reed hospital, and other exogenous factors which include, a major crude oil producer Norway announcing, it will be curbing some of its oil supply.

It’s fair to say that the ever-changing energy market would shift focus now on-demand rebalancing, although as the U.S election fast approaches, price volatility is expected to be in play.