Crude Oil Futures—Crude oil futures in the May contract is currently trading lower by 1.77% or $1.05 a barrel at 58.28 as prices remain choppy over the last several weeks looking for some fresh fundamental news to dictate short-term price action.
At the current time I’m not involved as this market remains choppy, however taking a longer-term view I think higher prices are ahead as the federal government is reducing U.S output as that is a bullish fundamental factor longer-term. At the current time the main reason for the recent decline is based on concerns that the resurgence of Covid infections throughout the world will hurt economic growth and energy demand is negative for crude prices.
India reported a record of 103,558 new Covid infections on Sunday, which prompted Maharashtra state to shut malls and restaurants through April. Also, France on Monday cut its 2021 GDP forecast to 5% from 6% because of the new 4-week nationwide pandemic lockdown.
Oil prices are trading above their 100 day moving average, but still below their 20 day as this trend is mixed, however I do not believe the high that was created on March 8th at 67.79 will be the yearly high so be patient as we could be involved in a bullish position soon as I do think there’s a possibility that we could trade as low as the $55 level.
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