Covid-19 torpedoes oil prices
The new lockdowns in German and France and the spiralling case numbers of Covid-19 cases in the US torpedoed oil prices below the waterline overnight. Concerns about the consumption outlook and an unexpected jump in official US crude inventories saw Brent crude fall 4.15% to USD39.00 a barrel. WTI fell by 4.10% to USD37.35 a barrel.
The stabilisation of equity markets in Asia has provided a brief respite for oil today, with both contracts edging 15 cents higher this morning. The consumption risks in Europe especially, and the technical picture on both contracts, makes for grim reading today still.
Brent crude failed to recapture its 200-DMA at USD40.90 a barrel overnight and now sits just above monthly support between USD38.75 and USD39.00 a barrel. Further losses to USD37.00 a barrel beckon if that support zone fails.WTI has resistance at its overnight high of USD39.00 a barrel but […]
October 29, 2020 (updated October 29, 2020) Published by StockMan