- Manufacturing Problems in Mexico and FDA Approval for Pfizer Vaccine Support oil prices in the short term
- Concerns about new travel restrictions reduce prospects oil demand
After a few weeks of heavy oil, prices have risen nicely this week demand optimism has been approved by a Covid-19 Vaccine In the United States and a production interruption Mexico. Oil production in the Gulf of Mexico has been cut by 25% since Sunday as a fire broke out in one of the state-run producers Pemex
offshore platforms. Experts have said it may take weeks to restore normal production, which will keep oil prices short-lived.
US crude oil has jumped more than 11% since opening Sunday night, its best weekly performance since March. The Bulls took a breather at Thursday’s session as many traders were likely to win by leaps and bounds, but the momentum has picked up again on Friday as the price per barrel is just over $ 68.
Buyers are likely to aim for more than $ 70 a barrel in the coming days, but there are still gray clouds that threaten to cut sentiment further as Covid-19 becomes an important hub for markets again. Since the restrictions were imposed in China a few weeks ago, we have seen Australia and New Zealand follow suit, as the new Delta variant proves to be more contagious, again causing a significant increase in cases. And the US is no exception, with new ones everyday cases having risen to its highest level since its peak in January this week, raising concerns about possible new travel restrictions in the country, a major blow to crude oil demand.
Despite the strong growth rate accumulated in recent trading sessions, the rise will start to rise, as the price will remain slightly below the 100-day moving average. As mentioned above, this is probably related to some taking a profit but some important risks that need to be acknowledged are likely to limit the number of new buyers who are attracting crude oil to a level that means that we may see some consolidation or even withdrawal before the rise again. If so, the area between 61.68 and 60.60 is a good place to look for support, followed by 57.36.
US crude oil Daily schedule
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– Written by Daniela Sabin Hathorn, Market Analyst
Follow Daniela on Twitter @HathornSabin