Wednesday, November 18, 2020

You Must Be Expecting This Commodity Decline

 Black commodities are trading under pressure after being surprised by an increase in US crude oil supplies, adding to the market's hesitancy on an otherwise weak global demand.

However, hopes of a decision by OPEC and its allies, including Russia's OPEC +, to suspend an increase in crude oil spending in January have helped offset oil prices.

The Brent crude level marker fell at $ 43.73 a barrel, while United States WTI lost $ 41.34 a barrel.

Ahead of the opening of the Asian session, it can be seen that WTI USA plunged to a price level of $ 34.58 a barrel before bouncing back to around $ 41.00 a barrel when the market opened today.

The American Petroleum Institute (API) on Tuesday reported that US crude inventories increased by an estimated 4.2 million barrels last week, far leaving the market range for an increase of 1.7 million barrels.

The oil market has previously achieved support rather than expectations of the Covid-19 vaccine which has shown positive progress in the tests it is running, boosting market confidence in the prospects for a clearer recovery.

However, with the continuous increase in the Covid-19 case, the price of oil is permanently limited to around the same price level.