Futures on US West Texas Intermediate Crude Oil retreated over 1% on Tuesday, while erasing gains achieved a day earlier, on mounting fears that continuing rise in new COVID-19 cases across the United States, the largest oil consumer globally, will hamper fuel demand recovery.
Since 16 US states reported a record surge in new coronavirus infections during the first several days of July, concerns mounted that health measures to restrain the spread of the illness could also limit fuel demand.
“The potential for demand destruction as lockdown re-instatement looks more likely are combining with concerns about OPEC+ discipline to weigh on oil prices,” Michael McCarthy, Chief Market Strategist at CMC Markets, said.
The Organization of the Petroleum Exporting Countries (OPEC) and allies have agreed to cut oil production by 9.7 million barrels per day in July, but output cuts for August are poised to slow down to 7.7 million barrels per day, thus, adding to supply. This, taken in conjunction with subdued gasoline demand and lockdown re-imposition are considered to be the main factors to mount pressure on oil prices.
As of 9:37 GMT on Tuesday WTI Crude Oil Futures were retreating 1.27% to trade at $40.07 per barrel, after earlier touching an intraday low of $39.92, or a price level not seen since July 3rd ($39.87). WTI Crude futures have retreated 0.39% so far this week, following a 5.38% gain in the preceding week.
Brent Oil Futures were losing 1.02% on the day to trade at $42.64 per barrel, after earlier touching an intraday low of $42.48, or a price level not seen since July 3rd ($42.34). Brent futures have dropped 0.33% so far this week, following a 5.06% surge in the prior week.
Daily Pivot Levels (traditional method of calculation) – WTI Crude Oil Futures
Central Pivot – $40.60
R1 – $41.04
R2 – $41.49
R3 – $41.93
R4 – $42.36
S1 – $40.15
S2 – $39.71
S3 – $39.26
S4 – $38.80
Daily Pivot Levels (traditional method of calculation) – Brent Oil Futures
Central Pivot – $43.18
R1 – $43.58
R2 – $44.09
R3 – $44.49
R4 – $44.90
S1 – $42.67
S2 – $42.27
S3 – $41.76
S4 – $41.26
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