The oil price failed to consolidate above resistance at 43$ and headed for 46.73$.
Despite the fact that countries OPEC quite faithful to the production reduction deal, and that there is a growing chance of a covid-19 vaccine soon, the European agencies of the IEA and OPEC continue to be pessimistic about oil demand growth in the near term, lowering their forecasts more and more.
The second wave of the pandemic is sweeping the world, restrictions are getting stricter, which means that oil has no reason to grow, on the contrary, additional volume cuts may be needed.
We should also not forget that the consequences of quarantines and injections of stimulus money await us. So an oil price above 40$ is not bad, although it creates difficulties for countries whose economies are tied to energy exports and sales.
- More forecasts and news on the Fortrader channel at Telegram