• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 2 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 9 days Does Toyota Know Something That We Don’t?
  • 3 days America should go after China but it should be done in a wise way.
  • 9 days World could get rid of Putin and Russia but nobody is bold enough
  • 11 days China is using Chinese Names of Cities on their Border with Russia.
  • 1 hour "What’s In Store For Europe In 2023?" By the CIA (aka RFE/RL as a ruse to deceive readers)
  • 14 hours Even Shell Agrees with Climate Change!
  • 11 days CHINA Economy Disaster - Employee Shortages, Retirement Age, Birth Rate & Ageing Population
  • 2 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 3 days How Far Have We Really Gotten With Alternative Energy
  • 12 days Putin and Xi Bet on the Global South
  • 12 days "(Another) Putin Critic 'Falls' Out Of Window, Dies"
Editorial Dept

Editorial Dept

More Info

Premium Content

Are Oil Prices About To Drop?

  • The market is in a position to post its second potentially bearish closing price reversal top in three weeks, indicating that selling is growing stronger as traders fear a second wave of Covid-19.

U.S. West Texas Intermediate crude oil futures are in trouble at the end of the week amid concerns over rising new coronavirus cases in the United States and China. Furthermore, there are renewed worries over a possible increase in U.S. crude oil production now that prices have recovered even though crude stockpiles are sitting at a record high.

The tone is turning bearish as investors continue to react to the surge in coronavirus cases although most traders don’t believe a second-wave of infections will be as damaging to the economy as the first-wave. The price action suggests a major price adjustment could be taking place. In the worst-case scenario, the crude oil markets could retrace 50% to 61.8% of the first rally.

Meanwhile, a new survey by the Dallas Federal Reserve Bank showed more than half of oil executives who cut production expect to resume some output by the end of July. This news is helping to keep a lid on prices early Friday.

Renewed COVID-19 Concerns

Worries about a second wave of COVID-19 cases in several U.S. states, where lockdowns had eased, and a rapid spread of infections in South America and South Asia are expected to keep a lid on fuel demand, traders said. The fear is that even if lockdowns are eased, people will stay home because of the perceived health risks.

Qantas Airways said on Thursday it expected little revival in international travel until at least July 2021, as it slashed a fifth of its workforce and grounded…





Leave a comment

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News