Oils stages an unimpressive Rally

Exclusive Capital Research Team

Exclusive Capital Research Team

See all articles
Oils stages an unimpressive Rally

Commodity Update, Thursday, 10th of September, 2020

Oil prices recovered modestly overnight, but the rally seemed artificial with prices moving higher in sympathy with equities and not because of improved oil fundamentals. Brent crude rose 2.20% to $40.60 a barrel, and WTI rose 2.85% to $37.80 a barrel.

Both Brent crude's and WTI's are now critical supports that must hold on a daily closing basis. Tonight's US crude inventories data will assume much greater importance than in recent times. With oil having fallen hard and fast, a rise in stockpiles by either crude or gasoline could spark another sell-off.

If Brent crude settles for an extended time under $40.00 a barrel in the coming weeks, the ball will move into OPEC+'s court again, with pressure increasing to roll back the recent easing in production cut targets. Achieving robust compliance this time around may prove much harder than previously.

Important Information: This communication is marketing material. The views and opinions contained herein are those of the author(s) on this page, and may not necessarily represent views expressed or reflected in other Exclusive Capital communications, strategies or funds. This material is intended to be for information purposes only and is not intended as promotional material in any respect. The material is not intended as an offer or solicitation for the purchase or sale of any financial instrument.

Read our detailed Marketing Communication Disclaimer

SHARE

CONNECT WITH OUR TEAM

Explore the ways in which we can help you achieve your investment goals.

OUR PARTNERS
bdo

EXTERNAL AUDITOR

ey

LEGAL ADVISOR

lgt

CUSTODIAN BANK

efg

APPROVED PARTNER

Raiffeisen

DEPOSITORY BANK

Prime Fund

GROUP MEMBER