Crude continues to trade at the top of the recent range, north of $40/bbl but concerns such as increases on the supply side and worries about demand recovery due to COVID-19 cases remain flying over the black gold, per TD Securities.
“After months of extremely deep market-driven and OPEC+ supply cuts, market expectations are starting to shift toward slight increases in shale output and tapering of the OPEC production cuts.”
“The demand recovery remains a question amid new virus concerns, while headlines from China suggest that after a buying frenzy weak refiner margins could see teapot refiners reduce throughput by roughly 2m bpd.”
“On the Canadian side of the border, crude could come under pressure as the US Supreme Court blocked construction of the Keystone XL pipeline in the US, which would delay the project into 2021, increasing the project's risk profile ahead of the US election.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.