Commodity Market: US Crude Oil gains for a third day as upbeat demand forecasts offset virus-related concerns

Futures on US West Texas Intermediate Crude Oil rose for a third straight trading day on Thursday, as upbeat oil demand forecasts overshadowed concerns stemming from COVID-19 resurgence in some parts of the world, including India and Brazil.

The Organization of the Petroleum Exporting Countries and allies, known as OPEC+, revised up their oil demand growth projection for 2021 to 6 million barrels per day, while the group also forecast global oil inventories to reach 2.95 billion barrels in July – a level below the average from the 2015-2019 period.

Additionally, Citigroup analysts said they expected vaccination programmes in North America and Europe to drive demand for the black liquid to an all-time high of 101.5 million barrels per day during the summer period. Yet, they also warned that a spike in new coronavirus infections in India and Brazil could hamper demand locally in case stricter lockdown measures are re-imposed.

“The outbreak in India is holding back oil’s rally. But if India can sort it out and hopefully avert a full lockdown in the process, the market should likely continue its rally,” Howie Lee, an economist at OCBC Bank in Singapore, was quoted as saying by Reuters.

Meanwhile, the weekly report by the US Energy Information Administration showed crude oil stocks had increased by 90,000 barrels during the week ended on April 23rd, or at a much slower rate compared to what analysts on average had anticipated – an increase by 659,000 barrels.

As of 8:23 GMT on Thursday WTI Crude Oil Futures were gaining 0.72% to trade at $64.32 per barrel, while moving within a daily range of $63.65-$64.35 per barrel. Yesterday the commodity rose as high as $64.53, or its strongest price level since March 18th ($64.88 per barrel). WTI Crude Oil Futures have risen 8.72% so far in April, following a 3.80% drop in March.

Brent Oil Futures were gaining 0.97% on the day to trade at $67.65 per barrel, while moving within a daily range of $67.12-$67.82 per barrel. Yesterday Brent Oil rose as high as $67.83, or its strongest price level since April 20th ($68.04 per barrel). Brent Oil Futures have risen 7.36% so far in April, following a 2.14% drop in March.

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

Central Pivot – $63.69
R1 – $64.70
R2 – $65.55
R3 – $66.56
R4 – $67.58

S1 – $62.84
S2 – $61.83
S3 – $60.98
S4 – $60.14

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

Central Pivot – $66.99
R1 – $67.84
R2 – $68.68
R3 – $69.53
R4 – $70.38

S1 – $66.15
S2 – $65.30
S3 – $64.46
S4 – $63.62