Listen to the latest market mood for the USOIL.
Oil was able to stage quite a recovery yesterday putting in a Bullish Outside Bar on the daily chart from key support. What was the reason for this? It was all about the coming OPEC+ production cuts which are scheduled to be withdrawn at the start of 2021. The significant news that haloed with the recover was that the Russian energy minister met with domestic oil companies and they discussed the potential for rolling over current production cuts for an additional 3 months until the end of Q1 2021.
This means that pullbacks in oil should find buyers ahead of the US election today. However, remember that a Biden victory is still expected to be a negative for US oil and could put some pressure on prices in the near term.
Trade Risks: The main risk to this trade is any negative news from OPEC+ that scheduled production cuts will be lifted at the start of 2021.