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Commodity Market: US Crude Oil eases from one-week highs as accelerating pandemic overshadows vaccine euphoria

Futures on US West Texas Intermediate Crude Oil eased from yesterday’s one-week high on Thursday, as accelerating pandemic and tighter economic restrictions worldwide heightened concerns over weaker fuel demand, while overshadowing vaccine optimism.

The latest data by the Center for Systems Science and Engineering at Johns Hopkins University showed total confirmed COVID-19 cases had already surpassed 56.306 million worldwide, with US cases now exceeding 11.529 million. Global death toll has surpassed 1.350 million, with more than 250,500 deaths reported in the United States alone.

“The spread of coronavirus infection and fresh restrictions in the United States and other parts of the world hit market sentiment as it would hamper fuel demand,” Kazuhiko Saito, chief analyst at Fujitomi Co, was quoted as saying by Reuters.

“Investors are also booking profits from the recent rally before the U.S. Thanksgiving holiday later this month,” Saito added.

New York City’s public school system, the largest across the US, called a halt to in-classroom instruction due to a surge in new COVID-19 infections, while Russia reported record new daily cases and deaths – 23,610 and 463 respectively. Meanwhile, Tokyo on Thursday lifted the coronavirus alert level to the highest.

Fujitomi’s Saito expects WTI Crude Futures to trade within the $40-$42 per barrel range until the OPEC+ meeting, scheduled for November 30th and December 1st.

“…lingering worries over a global supply glut, especially with the COVID-19-hit economies, will likely limit upside of oil prices,” Saito said.

As of 10:32 GMT on Thursday WTI Crude Oil Futures were retreating 1.59% to trade at $41.34 per barrel, while easing from Wednesday’s one-week high of $42.68 per barrel. WTI Crude Oil Futures have risen 15.42% so far in November, following an 11.01% slump in October.

Brent Oil Futures were edging down 0.50% on the day to trade at $43.92 per barrel, also easing from Wednesday’s one-week high of $44.86 per barrel. Brent Oil Futures have risen 16.01% so far in November, following a 10.11% drop in October.

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

Central Pivot – $42.00
R1 – $42.69
R2 – $43.38
R3 – $44.07
R4 – $44.77

S1 – $41.31
S2 – $40.62
S3 – $39.93
S4 – $39.25

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

Central Pivot – $44.17
R1 – $44.83
R2 – $45.53
R3 – $46.19
R4 – $46.86

S1 – $43.47
S2 – $42.81
S3 – $42.11
S4 – $41.42

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