On Tuesday, oil prices remained steady before maintaining a rally ahead of signs of increased demand after the epidemic, it makes oil producers continued to cut down on supply.

With the beginning of the greenwood recovery from COVID-19, with the opening of several states in the United States and around the world has made oil demand increase, while in New York the roads traffic are blocked due to being one of the most affected cities in the United States with more than 100 days lockdown.

On the supply side, the U.S. and Canadian oil and gas companies have reduced the number of goods they are operating at extremely low levels. That leaves them with an opportunity to recovery with higher price.

US coastal production is now experiencing a full two-year growth, supporting the market indication that despite rising prices, capital investments already cut in the first quarter will Does not return very quickly.

Support prices are also an indication that members of the Organization of the Petroleum Exporting Countries (OPEC) and its allies in the group known as OPEC + are obeying the curbs on production agreed to balance the market is also supportive of the price.

While fears about the second wave of COVID-19 in the United States and other countries have prompted investors to choose a safe heaven, at least 22 of the 50 U.S. states have reported an increase in cases after the economy re-opened with these two months. This happened as more than 2.4 million Americans report positive and the death toll was 122,000. Washington University’s new data predicts 200,000 deaths in the United States by October.

Pivot point: 40.35

Resistance1:​ ​ 40.70  ​Support 1:​ ​    40

Resistance2:​  ​41.20  ​ Support 2:​ ​ ​  39.50

Resistance3:​  ​41.70  ​ Support 3:​    ​38

Today’s oil Signals:

Traders should sell oil: 41, Set Take Profit: 38.50, Stop loss: 42.

Analyzed by: Ms. Van Sreytouch (Michelle)  Financial Analyst