Listen to the latest market mood for the USOIL.
Asian equity markets traded lower overnight as the risk tone was hindered by news of a California shut down. California Governor Newsom ordered indoor activities to close state-wide, including bars, restaurants, museums, zoos, and movie theatres. The negative risk-on tone has resulted in US oil sellers. Furthermore, the upcoming OPEC+ meeting is expected to relax its quotas slightly so that the group’s total production rises by 2 million barrels per day starting in August. Rising production levels are also pressuring oil today.
Therefore, expect oil sellers from pullbacks today.
Day trade outlook – We expect this trade to play out before the end of the US session.
- Any reversal in risk tone would strengthen oil and invalidate the outlook.