Crude Oil prices rallied upward on Friday amid growing optimism among crude oil traders that demand for fossils are picking up despite the resurgence of the COVID-19 pandemic.
Crude bulls have been raging upward after data from the world’s largest economy revealed gasoline, crude oil, and distillate stockpiles all plunged last week as U.S oil refiners increased their production capacity and demand for fossil products improved.
Brent Crude prices have been trading around a tight range of $45, as Crude oil bulls showed signs of exhaustion breaking through the resistance level.
The vital macro coming from U.S inventory data has supported the price of crude but the vital catalyst needed by crude oil bulls enough to break the critical resistance level will be the US stimulus package, on the basis that the deal will broaden economic recovery and, by extension, boost fuel demand.
However in spite of these impressive economic data coming from emerged markets, the rapid surge in Covid-19 case counts around the world remain a growing concern among crude oil traders
COVID-19 caseloads around the world have breached 20 million making crude oil traders wary on when new lockdown directives might be necessary in curbing the resurgence of COVID-19 pandemic.
In addition, crude oil traders are also aware about the high geopolitical uncertainty playing out presently. On Thursday the U.S government announced it’s seized the cargo of four tankers transporting Iranian fuel to Venezuela, as it stepped up its campaign on putting more pressure against the two heavily sanctioned countries.
The short-term technical picture for Brent Crude remains bullish. Crude oil traders will watch if prices could break pass $47 (200-DMA) and in the mid-term reach $54 area, especially if Russia’s registered COVID-19 vaccine gets World Health Organization approval.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire