Crude oil prices are on track for a third consecutive weekly rise, but demand concerns stemming from surging coronavirus cases and renewed lockdowns in several countries capped any further gains.
The likelihood of an effective
COVID-19 vaccine and hopes that OPEC and its allies would keep production under check has bolstered the oil markets this week. Prices up over 3% so far this week, the slimmest weekly gains in the last three weeks. The persistent rise in COVID-19 cases continues to cast doubts on-demand recovery.
Brent
spreads in 2021 have narrowed significantly as demand from Asia has been strong and markets remained hopeful that OPEC and its allies could extend
their output cuts.
Oil prices were also supported by signs of movement on a
stimulus deal in Washington. Any stimulus deal was done before the holidays
will help keep crude prices stay near the upper boundaries of its recent
trading range.
Ahead in this week, the crude price may witness huge volatility within the range of 2960-3200, where selling pressure can be seen near the resistance. Natural gas futures traded weaker on larger than expected build in natural gas inventories.
There is one storm in the Caribbean that has a zero
percent chance of becoming a tropical cyclone during the next 48-hours
according to NOAA. The weather is expected to be warmer than normal over the next 6-10 and 8-14 days according to an NOAA forecast. This should continue to weigh on prices.
Ahead in this week, Natural gas may trade with a
bearish bias as medium-term momentum has turned negative as the fast stochastic generated a crossover sell signal. The counter could face short-
term resistance is seen near 215 and support is seen near 180.
You need to monitor the trend of temperature in USA and also keep demand and supply under observaation to get a correct grip on the likely trend of Natural gas in the forthcoming week.
You
should Trade Less But Trade Accurately & this is Achieved with our Tip.
