Crude oil is holding onto gains this week despite some weakness in the stock market with traders seeking a catalyst for further gains in W.T.I.
Oil is also shrugging off a recent build in oil inventories with the Energy Information Administration reporting a gain of 0.8 million barrels for the week. U.S. inventories are around 6% higher than the five year average for November.
The increase in lockdown restrictions will hit demand so traders must be looking further ahead for pricing. The expected slowdown in Q4 global GDP will likely see OPEC cancel their planned supply increase for January. Additional stimulus measures can be expected from governments and there is also the potential for a vaccine in early-2021.
Crude Oil Technical Outlook
Crude oil is holding onto Monday’s gains with the price trading at $41.50 and the contract is looking for direction. The $42.00 level would open up the 26th of August highs at $43.50. If the market moves lower then a close below $40.00 would signal another downtrend is possible. The Investing Cube team is currently available to help all levels of traders with the Forex Trading Course or one-to-one coaching.
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Crude Oil Daily Chart
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