WTI edged lower on hopes faded on stimulus, eyes on EIA data
Crude oil prices nudged lower as hopes faded for another round of U.S. fiscal stimulus before Nov election along with a strong dollar which kept pressure on price. House Speaker Nancy Pelosi rejected proposal from Senate Republican leaders for a smaller scale approach to new stimulus and
demanded a revamped offer from the White House. Prices however got some boost after Chinese customs data showed crude imports in Sept were up over 2% MoM to about 11.8 Mbpd in Sept, signaling improving demand in Asia’s biggest economy. IEA reported in its World Energy Outlook that in its central scenario vaccines could mean global economy rebounds in 2021 and energy demand recovers by 2023. But under a delayed recovery scenario, it said energy demand recovery is pushed back to 2025, while OPEC also forecast slower demand recovery in their monthly report. OPEC+ are due to hold a monitoring meeting on Monday with UAE ministers giving bearish signals at Intelligence Forum, reporting that OPEC+ is planning to ease output cuts by 2Mbpd in Jan which can further increase the glut at a time demand recovery is stalling. Markets await weekly U.S. oil
inventory data due tomorrow.
Suggestion: BUY WTI OIL FROM 40 SL BELOW 39.45 TGT 40.60/41.15
ELSE SELL BELOW 39.40 SL ABV 40.70 TGT 38.80
demanded a revamped offer from the White House. Prices however got some boost after Chinese customs data showed crude imports in Sept were up over 2% MoM to about 11.8 Mbpd in Sept, signaling improving demand in Asia’s biggest economy. IEA reported in its World Energy Outlook that in its central scenario vaccines could mean global economy rebounds in 2021 and energy demand recovers by 2023. But under a delayed recovery scenario, it said energy demand recovery is pushed back to 2025, while OPEC also forecast slower demand recovery in their monthly report. OPEC+ are due to hold a monitoring meeting on Monday with UAE ministers giving bearish signals at Intelligence Forum, reporting that OPEC+ is planning to ease output cuts by 2Mbpd in Jan which can further increase the glut at a time demand recovery is stalling. Markets await weekly U.S. oil
inventory data due tomorrow.
Suggestion: BUY WTI OIL FROM 40 SL BELOW 39.45 TGT 40.60/41.15
ELSE SELL BELOW 39.40 SL ABV 40.70 TGT 38.80