The price of crude oil has stuck at average of $40 per barrel for months
I wrote about crude oil last time on June 16. when the price were at $39.00 per barrel. As I sow a potential small range in price, I didn’t sow a meaning to write about it. Simply, there was no clear technical signs of any larger movement up or down. No matter how the US Crude Oil Inventories was almost every week in favor of the price, or the OPEC+ effort to push the price up, the Crude Oil is in average of $40 for months. It’s obvious how the epic fall from April was made a too large damage for the market participants and disrupt the price for a longer period.
As you can see in daily chart, there is nothing what could help us, technical traders to take the advantage from the patterns. From June and low of $34/35 when I wrote how a see the price still bullish, the price reached the top at aprox. $43 in July/August, after which the low has confirmed at $36 in September/October. That’s all what we can see at the moment. It’s a strange year for the Oil price because of the Covid 19 and all the developments related with, probably it will be more problems furder. OPEC+ is doing a good job with the production cuts, what the Inventories shows clearly from July.
US crude oil inventories dropped by 1.001 million barrels in the week ended October 16th, 2020, following a 3.818 million decrease in the previous period and compared to market expectations of a 1.021 million fall, according to the EIA Petroleum Status Report. Meantime, gasoline inventories were up by 1.895 million barrels, while markets had forecast a 1.829 million decline.