FXEMPIRE
All
Ad
Corona Virus
Stay Safe, FollowGuidance
World
40,625,427Confirmed
1,122,706Deaths
30,338,643Recovered
Fetching Location Data…
Advertisement
Advertisement
Adesina Olumide
oil

Both International oil benchmarks had their forward curve widened last week, as seen in Dec. crude oil contract revealing a high amount of crude supplies at the spot market

Crude oil traders are pulling back long bets, as COVID-caseloads flare-up in various parts of major global economies threatening a rebound in energy demand as OPEC+ increase crude oil production after easing their historic output cuts last month.

Oil traders, are also aware of the recent bearish hold, as prices of Brent crude trades below the $42.50 per barrel, breaching the $45 critical support level on Friday

Now that Brent crude oil is back towards the $42 support level, showing crude oil bulls failed to keep the price of technically above the $46 price level partly triggered with the U.S dollar rebounding from its two year low.

That said, attention is now focused on the prevailing macros, affecting crude oil demand/supply rebalancing as prices approach the $40 support level, as bearish bias got triggered when recent data showed U.S gasoline demand dropped momentarily.

The next support level crude oil traders will be focusing on in the near term in the case of Brent crude is the $40.price level as a breach below that price would increasing the selling pressure by Brent crude bears and negate the formation of a potential reversal pattern.

However, Crude oil bulls could keep the price of Brent above the $40 price level on the basis that the weather condition around the energy hub in the Gulf of Mexico over the past several days has limited upside on diesel shipments in the near term and created some scarcity on diesel supply.

In addition, the Russian energy minister recently disclosed that OPEC+ will continue to track the global oil market on a monthly basis in order to curb overheating and support crude oil prices if the need arises.

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