Oil investors await the IEA World outlook and OPEC’s report::
Crude oil prices slipped, as a string of supply disruption which supported prices is subsided now, with bearish headwinds from easing supply blocks in Norway and Libya which opened up the door to potential rise in global oil production to a market facing feeble demand due to pandemic. Energy Operators have restarted their production in Gulf of Mexico after Hurricane Delta which led to shut in the most US offshore production is now downgraded to post-tropical cyclone. Concerns over rising supply were compounded by news that Libyan output was expected to initially restart 40,000bpd, before reaching its capacity of almost 3,00,000bpd in 10 days. The final blow to oil prices came from Norway, with negotiations successfully ending strike action that had crippled 8% oil production. Today, investors await the IEA World outlook followed by OPEC’s Monthly Market Report. Sentiments remain bearish as supply ease and expectation for a muted demand outlook from agencies can put additional pressure on prices as promising results are not expected from either of the report.
Suggestion: BUY WTI OIL FROM 39.80 SL BELOW 38.80 TGT 41 ELSE SELL BELOW 38.80 TGT 38.20/37.60 SL ABV 39.80
Suggestion: BUY WTI OIL FROM 39.80 SL BELOW 38.80 TGT 41 ELSE SELL BELOW 38.80 TGT 38.20/37.60 SL ABV 39.80
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