Significant factors impact on the plunged of Crude Oil in the early of this week
- 2020-10-27
Crude Oil has dropped below 39 dollars per barrel, low since the last 3 weeks. Currently, it is trading in between 38 dollars due to the stalling of stimulus package at the same time also related to the increasing of coronavirus cases in the US.
Another new factor impacted to the demand and supply of Crude Oil, we could see the increasing of oil product in Libya in the number of 690,000 barrel, which in the early July, the number was lower than 100,000 barrel per day. “To be noted that, Libya has just reached a nationwide ceasefire agreement from both sides to end its civil war on Friday, October 23, 2020.”
Saudi Arabia’s Minister of Energy said at a recent OPEC meeting that OPEC+ must be vigilant and take a stand in reducing its production chain to boost oil prices. Oil investors’ expectations are likely to be a little disappointed with the stagnation of the US stimulus package, which is expected to take shape after the presidential election.
Trading recommendation:
- Open short position:
- Short in between 39 to 39.50 dollars
- Stop Loss at 40.50 dollars
- Take Profit at 38 or 37 dollars
- Open long position
- Long in between 37 to 38 dollars
- Stop Loss at 36.50 dollars
- Take Profit at 39 or 40 dollars
Analyzed by: Mr. Nhim Kosol，Independent Analyst