Hello people, hope every one has been safe indoors and at the same time walltimes has not been much active on the forum since weeks.
However, oil has certain factors to consider before it moves either way :
1. A second wave of pandemic , where in cases are riding in United States and also in India and China of course , this will make people to wait for a loner period to resume cross broader travels and also demand might remain low. It will affect both consumer n industrial demand of oil.
2. Bad situation between US and China and several other nations. Unsaid trade war is ON.
escalation between India and China too are a worry because these two are biggest crude importers.
3. Given the lockdown since months now has already dented and slowed down economies around the world and it's evident that fuel prices should remain low.
4. Productions cuts that are in place , shall resume sooner or later and again this will push the prices southwrad.
5. Oil has already reached much anticipated level of 40+ usd. Do we expect a bull run from here ignoring the above situations in hand. Perhaps not.
It seems it will stay between 40-30 usd for a longer span with high volatility.
We, yet ,don't know about the upcoming US elections that are approaching, how this is going to take place, will also play a major role in prices of most assets with increased volatility.
I personally don't see anything great ft here as far oil prices are in question, we might be hovering around same levels. Not advisable to be too optimistic on either side and just keep trading each day as it comes to be remain safe.