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Commodity Market: US Crude Oil edges lower amid accelerating pandemic, worsening US-China diplomatic ties

Futures on US West Texas Intermediate Crude Oil retreated on Monday as market players trimmed positions in riskier assets amid accelerating coronavirus pandemic and deteriorating diplomatic relations between the United States and China after the closures of consulates in Houston and Chengdu.

US Secretary of State Mike Pompeo once again aimed at China, as he said the US and its allies would need to use “more creative and assertive ways” to urge China’s Communist Party to change its ways.

The latest data by the Center for Systems Science and Engineering at Johns Hopkins University showed total confirmed COVID-19 cases had already surpassed 16.264 million worldwide, with US cases now exceeding 4.234 million. Global death toll has surpassed 648,000.

Demand for the black liquid has somewhat rebounded from a second-quarter bottom, but recovery is seen as uneven because renewed lockdown restrictions across the United States and elsewhere are weighing on consumption.

Meanwhile, after storm Hanna hit the Texas coast during the past weekend, oil traders will be looking for indications of its impact on production. Oil and gas producers said last Friday their operations would probably remain unaffected by the storm.

As of 8:39 GMT on Monday WTI Crude Oil Futures were edging down 0.22% to trade at $41.15 per barrel, while moving within a daily range of $40.92-$41.38. WTI Crude Futures gained 1.64% last week, as they marked their best performance since the business week ended July 3rd. US Oil is also poised to register its third straight month of gains.

Brent Oil Futures were edging down 0.23% on the day to trade at $43.20 per barrel, while moving within a daily range of $42.96-$43.39. Brent Oil Futures rose 0.49% last week, erasing losses from the prior week. UK Oil is also set to register its third consecutive month of advance in July.

Daily Pivot Levels (traditional method of calculation) – WTI Crude Oil Futures

Central Pivot – $41.19
R1 – $41.70
R2 – $42.17
R3 – $42.68
R4 – $43.20

S1 – $40.72
S2 – $40.21
S3 – $39.74
S4 – $39.28

Daily Pivot Levels (traditional method of calculation) – Brent Oil Futures

Central Pivot – $43.33
R1 – $43.85
R2 – $44.39
R3 – $44.91
R4 – $45.42

S1 – $42.79
S2 – $42.27
S3 – $41.73
S4 – $41.18

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