Futures on US West Texas Intermediate Crude Oil extended losses from the prior trading days on Monday and hit lows not seen since late May, as markets prepare for high volatility during the US presidential election week.
Concerns that the re-imposition of lockdown measures in Europe to slow down coronavirus spread could further weaken demand for fuel mounted additional pressure on oil prices.
“A lot of traders are now looking at the U.S. and their rising infection rates and wondering if Europe is providing the model for what will happen in the U.S. in the coming weeks,” Michael McCarthy, chief market strategist at CMC Markets, was quoted as saying by Reuters.
Meanwhile, a tighter race just before the US Election Day and potential electoral uncertainty triggered caution among market players.
“The most immediate concern for markets is that political paralysis will delay or diminish a fiscal response to the deteriorating coronavirus situation,” CMC’s Michael McCarthy noted.
WTI Crude Futures retreated for a second consecutive month in October, by 11.01%, and Brent Oil Futures plummeted 10.11% due to concerns over weakening demand and increasing oil supplies from the United States and OPEC members such as Libya and Iraq.
According to Goldman Sachs, the OPEC+ group will probably postpone a planned 2 million barrel-per-day production ramp-up past January. OPEC+ members are expected to meet on November 30th and December 1st. The group’s oil production rose for a fourth straight month in October, as output cuts by the majority of members were offset by increasing supplies in Libya and Iraq.
As of 10:18 GMT on Monday WTI Crude Oil Futures were retreating 2.18% to trade at $35.01 per barrel, after earlier touching an intraday low of $33.64 per barrel, or a price level not seen since May 29th ($32.36).
Brent Oil Futures were losing 2.11% on the day to trade at $37.06 per barrel, after earlier touching an intraday low of $35.76 per barrel, or a price level not seen since May 29th ($34.70).
Daily Pivot Levels (traditional method of calculation) – WTI Crude Oil Futures
Central Pivot – $35.87
R1 – $36.52
R2 – $37.26
R3 – $37.91
R4 – $38.57
S1 – $35.13
S2 – $34.48
S3 – $33.74
S4 – $33.01
Daily Pivot Levels (traditional method of calculation) – Brent Oil Futures
Central Pivot – $37.74
R1 – $38.68
R2 – $39.51
R3 – $40.45
R4 – $41.40
S1 – $36.91
S2 – $35.97
S3 – $35.14
S4 – $34.32