Oil Traders Wait on Pro-Fossil Leader’s Health Recovery

A positive update on President Trump’s health and his increased likelihood of winning the highly contest election would also trigger prices of crude up arbitrarily as under his belt the United States became the largest producer of the black fossil and also maintained its charge as the leading producer of natural gas, coupled with his pro fossil polices, in spite of the consistent outcry of leading environmental groups.

The two major oil contracts, Brent crude, and West Texas Intermediate lost about 8% in the previous week as if that wasn’t enough the US House Speaker Pelosi and U.S Treasury Secretary failed to secure the long-awaited stimulus deal package, with President Trump temporarily out of the picture oil traders will be wary ongoing bullish in the near term as there seem to be no uniting factor at the U.S Capitol now in putting the deal through.

Also OPEC is due to taper their crude oil output cuts by 2 million barrels per day in January 2021. Knowing that oil traders and major oil-producing countries are now in a precarious situation, with prevailing gasoline demand melting like ice-cream in the sun the odds for OPEC increasing production in Q1, 2021 seems to be low as such a move will take the price of crude below $35/barrel amid high probability that the present fragile oil market is already approaching saturation level.

That said, some energy experts believe a significant number of oil traders remain optimistic in the long run on the basis that the recent monetary policies being printed out of the world’s largest economy are ultra-dovish and the higher odds favoring the introduction of an approved COVID-19 vaccine hitting the market by Q1, 2021.

These fundamental drivers stated above are expected to keep crude oil prices above $30/barrel mark in the long term even if they temporarily disappoint in the near term.