Brent and WTI crude oil are both constrained in the red zone on Wednesday. Investors are responding to reports of a weak recovery in US fuel demand and Donald Trump's allegations of sanctions on China.
Despite the fact that many states have eased quarantine measures and lifted restrictions on the movement of citizens, ANZ Research experts reported that, according to preliminary estimates, gas demand will decrease by 30% compared to last year. Many citizens decided to abandon their traditional summer trips, fearing the onset of a second wave of pandemic.
Many experts started talking about the expected balancing of the oil market in June-July, which is too optimistic of a forecast. The risks of starting a second wave of pandemic and new restrictive measures remain very high.
New statements by Washington and Beijing seriously spoiled investor sentiment. Donald Trump announced new possible sanctions against China. In response, Beijing threatened to retaliate against any unfriendly US actions. Investors fear a worsening situation in the global economy, which is already under pressure due to the consequences of the coronavirus pandemic.
Today, investors will follow the publication of the latest stock API data.
The bulls could not gain a foothold above the level of 34.00. Gradually, the price was turned down again. Today we expect the prevalence of bearish sentiment in the market and the development of a downward movement in the direction of the level of 32.10.
The main scenario - a decline towards 32.10.
An alternative scenario - a consolidation above the level of 34.00 and growth in the direction of 35.70.
The current fundamental outlook is moderately negative. We would prioritize shorts. Entry points should be expected in the range of 34.00-34.40.
Only from November 02nd, 2020, to January 04th, 2021, Deposit Bonus 200% is available for all FortFS clients! Use the advantage to engage for the unique offer within a limited period: activate the deposit bonus and get up to 200% on the deposit amount on your trading account! How to get a Deposit Bonus of […]
Only from 23 to 25 of November, the largest no deposit bonus 100 USD is available for all Forex traders! 🏆 Bonus details: 100 USD maximum withdrawal 75 lots of required trading turnover 2 weeks to try all of the trading conditions Available for cent accounts 📍 How to get the bonus: 1) Register an […]