Corona Virus
Stay Safe, FollowGuidance
Fetching Location Data…
Adesina Olumide
WTI Brent Crude oil

As oil traders fretted on high COVID-19 numbers prevailing around the world as it distorted their minds on the weakening pace of the global economic recovery.

A the time of writing this report, Brent crude traded above $44/barrel and the U.S oil-based contract West Texas Intermediate futures dropped slightly to trade at around $41.66/barrel, as both major crude oil benchmarks traded above the $40/barrel mark.

Still, oil traders are not having an easy ride, in spite of the prevailing bullish trend, and concerns on COVID-19 second wave of attacks is steadily getting out of hand, as COVID-19 virus looks firmly attached across major emerged markets.

The pandemic has already disrupted the global economy, negatively, as demand for energy erodes significantly, meaning OPEC+ would continual need to intervene in the fragile energy market to keep prices supported, as oil bears await the latest U.S initial Jobless claims data, for deeper insights on the health of the world’s largest economy

That said, the oil market surprisingly outperformed expectations, as oil traders’ shrugged off the mixed American Petroleum Institute and Department of Energy data, taking into consideration the recent macro from the second-largest economy, China revealing positive import data, hinting oil traders that the worse is definitely over.

Brent crude prices are ranging between the $43.88 – 44.58/barrel with no catalyst to break over the $44.8/barrel price level on the bias showing oil traders are forced to hedge the downside risk as it could be a matter of time before the growing political uncertainty currently playing out in the U.S could lead to the shutdown of the whole holiday season.

However, it will be costly for Oil traders to rule out the bullish trend prevailing relatively on market sentiments showing positive news from Pfizer announcing the final results of its Covid-19 vaccine trial showing it had a 95% success rate coupled with Oxford potential vaccine showed seen as having “encouraging” immune response in older humans means crude oil bulls could get enough boost to break above $45/barrel.

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
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.
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.