Listen to the latest market mood for the USOIL.
Earlier this month that both the IEA and the OECD cut their global demand projections for oil consumption. The latest monthly OPEC report projected that oil demand growth for OPEC crude would fall by 700K bpd to 22.6 mln bpd for 2020. The future demand growth was revised down even further for 2021. This was reduced by 1.1mln bpd to 28.2mln bpd. The reasons that OPEC cited the 2020 demand cut was due to weaker oil demand performance. Unsurprisingly, OPEC said risks remain elevated and skewed to the downside, particularly due to COVID-19 related risks. With the latest risk off moves hurting equity markets and COVID-19 cases rising sharply in Europe oil markets are likely to remain pressured in the near term.
Therefore, expect US oil sellers at market.
- A vaccine will negate this outlook and inspire confidence in rising demand for oil.
- If Libya’s oil production does not come back on line that will support oil markets in the near term.