Crude oil is trading in the red zone on Tuesday amid falling demand for all risky assets and growing concerns about the outlook for the global economy.
Investors are focused on reports of a worsening epidemiological situation in the EU. A new outbreak of the virus could significantly slow down the pace of economic recovery, which will negatively affect the level of demand for energy.
The price is also being pressured by reports that a new storm in the Gulf of Mexico has quickly began to fade. The Texas refineries continued to operate normally. Many drilling platforms have also resumed operations.
Another factor of pressure on the entire commodity sector is the dynamics of the dollar. On Monday, the dollar index strengthened significantly. This trend continues today. Commodity assets are becoming more expensive for foreign investors.
Today in the economic calendar it is worth paying attention to the publication of weekly data from the API.
The chart is dominated by bearish signals. Today we expect a breakdown of the support at 39.15 and a decline to 38.60.
The main scenario - an increase to 40.00 and a fall to 38.60.
An alternative scenario - a decline to 38.60 from current levels.
The current fundamental outlook is moderately negative. We consider shorts from the levels of 40.00 and 40.50.
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