FXEMPIRE
All
Ad
Corona Virus
Stay Safe, FollowGuidance
World
62,048,552Confirmed
1,450,146Deaths
42,834,366Recovered
Fetching Location Data…
Advertisement
Advertisement
James Hyerczyk
WTI and Brent Crude Oil

U.S. West Texas Intermediate and international-benchmark Brent crude oil futures are edging higher at the mid-session on Thursday after posting a choppy, two-sided trade earlier in the session. Although traders are leaning toward the upside this week, gains have been capped by rising crude oil supplies and a surge in new coronavirus cases. Meanwhile, a slight increase in demand for refinery products is helping to underpin prices.

At 16:26 GMT, August WTI crude oil is trading $38.96, up $0.75 or +1.99% and August Brent crude oil is at $41.42, up $0.71 or +1.74%.

Rising Global Demand Concerns

Helping to cap gains this week are renewed worries about fuel demand after a surge in coronavirus cases in Beijing and the United States threatened to lockdown portions of the economy. In China, for example, the government shut down schools and cancelled flights. In the U.S., government officials in Texas, Florida and California are reconsidering imposing restrictions at bars and restaurants.

Advertisement

Mixed EIA Report Raises Hopes for Bulls

This week’s Energy Information Administration (EIA) government inventories report offered a ray of sunshine for the bulls after gasoline and distillate inventories fell unexpectedly. Additionally, crude oil output is now down at 10.5 million barrels per day as oil producers continued to slash output.

OPEC to Hold Online Meeting

OPEC and its allies held an online meeting on Thursday to discuss the future of a record 9.7 million barrels per day (bpd) output cut.

Thursday’s discussion was unlikely to recommend an extension of record cuts into August, sources said. OPEC+ compliance with production cut commitments in May was 87%, two OPEC+ sources said on Wednesday.

Saudi Arabia Crude Exports Rose to 10.237 Million Barrels per Day in April – JODI

Saudi Arabia’s crude oil exports in April rose to 10.237 million barrels per day (bpd) from 7.391 million bpd in March, official data showed on Thursday.

In April, on average the 13-member Organization of the Petroleum Exporting Countries pumped 30.25 million barrels per day (bpd), according to a Reuters survey published that month, up 1.61 million bpd from a revised March figure.

Short-Term Outlook

It looks as if traders are starting to price in the real possibility that a rise in COVID-19 cases will not be as bad as the first wave of infections. The price action suggests that trader don’t believe there will be wide spread shutdowns and that the economy will just ride out this phase.

The key will be the gasoline and distillate numbers. If inventories continue to fall then this will indicate that people are driving, truckers are on the road and airlines are reopening routes.

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

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Trade With A Regulated Broker

  • Your capital is at risk
IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US