Crude Demand Concerns
As we have indicated in our coverage over the last 3 sessions, we have detected a noted shift in crude oil fundamentals from bullish toward bearish. In addition to a notable build in crude oil stocks in weekly statistics, fear of demand destruction is on the rise again along with infections and perhaps most importantly the market saw a prediction from the IEA overnight that US oil Production might have bottomed last month
With the failure on the charts again this morning and the market seemingly bored with bullish weather forecasts through the end of the month, it is clear that the trade is poised to knock prices back toward the lows. In fact a normal corrective setback down to $1.714 should not be ruled out, especially if petroleum and equity markets fall aggressively to end the trading week and modest fear of infections turns into significant fear before the close today.
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