Market mood US oil – The negative risk-on tone has resulted in US oil sellers [Video]

Giles Coghlan LLB, Lth, MA Financial Source

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.

Trade Risks

Any reversal in risk tone would strengthen oil and invalidate the outlook.

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Author

Giles Coghlan LLB, Lth, MA

Financial Source

Giles is the chief market analyst for Financial Source. His goal is to help you find simple, high-conviction fundamental trade opportunities. He has regular media presentations being featured in National and International Press.

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