Up Trending Cases of COVID Caps Oil Prices

Posted by James Hughes -
Scope Markets

Table of Content

The crude oil futures for U.S. WTI or West Texas Intermediate are trading almost flat. Whereas going for their 1st weekly declines in 3. The exchange is experiencing force from both the supply and demand fronts. And, led each by growing covid cases in the US, Europe, and Libyan production grows. 

COVID Caps Oil Prices – Business Activity of Euro Zone Decreases  

Many U.S. states reached record regular growth in covid cases. Thus, increasing concerns related to future fuel needs. Whereas France prolonged curfews for approximately 2/3 of its population. Because the 2nd surge of the pandemic clears crossways Europe. 

In similar news, financial activity in the Euro Zone reduced in October. Because of Covid caps, oil prices and limitations turned to the area. 

The report EuroZone PMI COI, which considers activity in both production and services segments, fell to a 4-month reduction in October to 49.4, compared to 50.4 in September. A version under 50 shows a shortening in movement. 

Crude oil production of the United States fell in May. And, dropping from two million barrels per day to ten million barrels per day. The U.S. EIA or Energy Information Administration stated in a periodical report. 

In similar news, Chevron Corporation announced an $8.3 billion decline in resource write-downs. As well as ExxonMobil Corporation posted a 2nd consecutive periodical loss. 

Crude Oil- Regular Swing Technical Study

The key trend is down as per the regular swing pattern. The trend was reduced on Thursday when traders considered 3 key bottoms at 40.48, 39.97, and 38.77 dollars before closing at $38.72. 

A trade via $38.72 would show a restarting of the downtrend, whereas a move via $41.93 would alter the key to an uptrend. 

On the inside out, the big resistance is a lasting 50% point at $41.72. 

And, on the downside, retracement area support comes in from 39.92-39.30 dollars. 

The latest secondary range is 41.93-38.72 dollars. Its 50% point at $40.32 seemed like insignificant resistance. It could manage the way of the trade in the coming sessions. 

What’s all About Short-Term Outlook?  

The news reporters stated that the market was then held by some bullish trading data from May month. Definitely, it is data news. If you attended the Baker Hughes figures released every Friday. Then, you would have noticed a decline in the quantity of manufacturing oil rigs. This signifies that production was reducing. No wonder there. 

Oil prices are tending to keep in a certain range. But with a preference to the downside, all in all, the covid cases continues to grow. This is due to its effect on demand. As OPEC+ extends to cut production, the supply front should not be out of limit. 

Technical viewpoint

From a technical viewpoint, till a vaccine doesn’t get developed in the future, purchasers are going to get a tough time subduing the main resistance at 41.72 dollars. 

Meantime, a continued move below $39.30 can activate an expedition to the downside. The regular chart depicts that 36.96- 35.83 dollars is a possible downside goal. This can be useful because this area shows worth so a check of this region is possible to bring in new purchasers. 

Crude prices reform on US spur hope, but COVID caps oil prices

Prices of energy fixed higher on Oct. 20 among hints of improvement on a US covid provocation bill. But market expectations stayed under pressure among repeated social limitations in Europe. 

November WTI of NYMEX fell by sixty-three cents raised at $41.46/b. And, ICE December Brent crude rose by fifty-four cents to fix at $43.16/b. 

Oil prices that were trading in adverse territory first in the session, set on top midday when Nancy Pelosi, House Speaker said she was confident that an incentive bill could get enacted before the November polls. 

November RBOB of NYMEX fixed at 2.56 cents more at $1.1879 per gal and ULSD of November month was up by 1.54 cents at $1.1735 per gal. 

Nancy Pelosi and Increased Stimulus  

Nancy Pelosi on October 18 had provided the White House a 48-hour limit to make interventions to get a bill enacted before the polls. 

Increased risk for prolonged incentive spending counted on the USD. Thus, giving more support to commodity prices. The ICE USD Index was checking 1-month lows at approximately 93.09 in midday trading. 

And, perils to the demand prospects acted by growing covid cases capped the gathering. 

Social limitations and Impact on Oil Prices  

The demand risks increased late after the Irish Prime Minister stated that his country will start a 6-week national lockdown from Oct. 21. Whereas many European nations have reinforced social limitations in current weeks, Ireland is the first country to come back to complete lockdown. 

In the United States, the 7-day percentage of novel coronavirus infections approached 57,415 on Oct. 19, as per data from CTP, the top-level since August 4. 

All to See for Supply Perspective  

Supply risks also kept in pressure since the OPEC+ coalition gets ready to lift their 7.7 million barrels per day. The joint-stock reduces by a part to 5.8 million barrels per day at the beginning of 2021. 

With 6 weeks to go before the complete 23-associates OPEC+ coalition holds to view its 2021 manufacturing plans, the group’s JMMC said Oct. 19 that it was almost heeding market tendencies. Also, will not delay calling for more supply control if required. 

Declining demand extension and the recovery of Libyan stocks have blurred the way to firm and growing oil prices. 

The market is pricing in an OPEC+ setback to the proposed conic of their reduction deal.

All Capped Oil Price Data  

The fidgets on Covid cap oil prices, financial risk, and demand because of a covid growth have driven an assembly in the dollar. Because investors came back to more secured assets, continuing restraint on oil prices. A powerful dollar makes oil less engaging to purchasers employing different currencies. 

Prices were also exceeded or capped by data depicting a U.S. business cooling activity in Sept.

On the supply front, the market stays alert to a revival of exports from Libya.

Oil Demand in Different Places  

Markets are now worried about requirements in locations such as the UK, where new constraints are being forced. U.S. health experts are also advising of the latest wave in the approaching winter.

Traders will be looking for the American Petroleum Institute’s (API) data on U.S. oil records due on Tuesday. 

Crude oil of US and gasoline buildup likely dropped the previous week. Whereas inventories or lists of distillates like diesel was then seen rising, a preparatory Reuters poll said. 

Surging Covid Cases and Effect on Oil Prices  

Oil prices shifted on Tuesday. Because of concernsor worries of rising COVID-19 cases, the growing supply of Libya. Also, the U.S. poll shakes exceeded raising hopes. That large producer will hold again on projected production growth. 

The crude futures of U.S. WTI or West Texas Intermediate slid by 6 cents. Or 0.2%, to 36.75 dollars a barrel, whereas crude futures of Brent dropped by 15 cents, or 0.4%, to 38.82 dollars.

Standard oil prices, because of covid caps oil prices, falling over the previous week, had a slight reprieve before. Thus, growing almost 3% after Russia’s oil minister continued discussions with national oil companies. That is, in a sense, to hold crude output growth intended for Jan.

Russian Power Minister met with the top directors of Oil companiesin Russia. Thus,to address a workable expansion of oil production restraints into 2021.

OPEC and Allies on Crude Oil and Covid Caps Oil Prices

OPEC is The Organization of the Petroleum Exporting Countries and partners Russia. It is a group known as OPEC+. That severed oil production from May to raise prices and reduced the cut to 7.7 million barrels per day in August. They are because of cutting that more by two million BPD in Jan.

But with rising COVID cases in Europe and the US and the current recovery gain of oil supply from Libya going after an 8-month siege. Also, because of covid caps, oil prices all get scared of dropping oil prices.

OPEC will organize its next oil meeting on November 30.

In diverse bearish signs, analysts expected that U.S. crude stocks will rise by two million barrels till 30 October. 

U.S. index data is enough from the API or American Petroleum Institute. As well as from the Energy Information Administration (EIA).


Economic times – Oil down 1 as us dollar firms on bets of split white house senate
SP global – Oil futures crude prices rally on us stimulus hope but covid 19 surge caps rally
CNBC – Oil markets coronavirus fuel demand
Oilprice – Soaring Number Of COVID Cases Caps Oil -Prices


Analysts stated that U.S. index data was not all certain due to Covid caps oil prices. And, with gasoline inventories having grown by 1.5 million barrels. That is the next to analysts’ hope for a drawdown.

Normal highway practice in France, Italy, and Spain has reduced to its lowest point since June. And, that doesn’t predict well the gasoline demand, analysts said.

Share this article:

Disclaimer: This material is a marketing communication and shall not in any case be construed as an investment advice, investment recommendation or presentation of an investment strategy. The marketing communication is prepared without taking into consideration the individual investors personal circumstances, investment experience or current financial situation. Any information contained therein in regardsto past performance or future forecasts does not constitute a reliable indicator of future performance, as circumstances may change over time. Scope Markets shall not accept any responsibility for any losses of investors due to the use and the content of the abovementioned information. Please note that forex trading and trading in other leveraged products involves a significant level of risk and is not suitable for all investors.

Payment Methods

Scope Markets
Scope Markets
Scope Markets
Scope Markets


Scope Markets
Scope Markets
Scope Markets
Scope Markets

Scope Markets offers institutional and retail trading services to businesses and traders worldwide. Our top management team has more than 20 years of experience in the industry, and we are proud of the solid partnerships we built over the years. Whether it's a business or individual, Scope Markets has a wide range of trading solutions that are compliant, flexible, cost-efficient, innovative, and place the client first.

Contact Us

Registered address:
6160, Park Avenue, Buttonwood Bay, Lower Flat Office Space Front, Belize City, Belize


+44 2030 516959

Risk Warning

Please note that forex trading and trading in other leveraged products involves a significant level of risk and is not suitable for all investors. Trading in financial instruments may result in losses as well as profits and your losses can be greater than your initial invested capital. Before undertaking any such transactions, you should ensure that you fully understand the risks involved and seek independent advice if necessary. Please read and ensure you fully understand our Risk Disclosure.

Legal Information

RS Global Ltd is authorized and regulated by the Financial Services Commission of Belize ("FSC") under the Securities Industry Act 2021 with registration number 000274/2.

Restricted Regions

Scope Markets does not offer its services to the residents of certain jurisdictions. Please read carefully our Restricted Countries document.

This website uses cookies to provide you with the very best experience and to know you better. By visiting our website with your browser set to allow cookies, you consent to our use of cookies as described in our Privacy Policy.

© Copyright 2022 Scope Markets. All Rights Reserved.