Crude oil has pulled back from the election week rally as traders fear a Biden green agenda could hurt the oil sector. Oil was lower for a second day but a Friday bounce gives bulls some hope.
The price of oil rallied with the U.S. election as Donald Trump moved into favouritism with the bookmakers. It seemed that the President was ahead in the key states needed and ready to grasp a second term. Joe Biden has since moved ahead amid counting chaos in the contested states. Oil has dipped as Biden grabs more states and investors are worried that a green agenda could hit the prospects for the U.S. oil sector.
Oil saw a rare drop in crude inventories with a decrease of 8 million barrels from the week before. The Energy Information Adinistration said that the 484 million barrels in storage are around 7% higher than the five year average compared to usual stocks at this time of year.
Today sees the Non-Farm Payrolls release which could move the U.S. dollar but oil saw little support from the Federal Reserve’s signal of further stimulus measures. and may not be affected by jobs. The price of crude will hang on the election and volatility could be seen on Monday if there is any change in the election outcome over the weekend.
Crude Oil Technical Outlook
Crude oil topped near $39.00 in the election week and has pulled back in the last two days but the price has bounced today to $38.00. Oil can still rally next week but traders should look for a close above $39.00 the moving average before going long. 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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