Oil prices strengthen its gains despite OPEC lowering its demand forecast

Mohammed Abdelkhalik
October 13, 2020
oil prices

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Oil Price Weekly Outlook: 14th October 2020

Oil prices rose during trading today at mostly online brokers, Tuesday, with the support of Chinese demand and ahead of US stockpile data releasing, despite the announcement by “OPEC” to cut its forecast on global demand.

The General Administration of Customs in China had confirmed that the country’s imports of crude rose by 2.1% during the past month compared to August.

OPEC lowered expectations for global demand for crude growth in 2021 by 6.5 million barrels per day to 96.8 million barrels per day, which is less than previous estimates of about 80 thousand barrels per day.

The organization maintained its expectations regarding a decline in global oil demand by 9.5 million barrels per day to 90.3 million barrels per day in 2020, while OPEC production decreased by 47 thousand barrels per day to 24.10 million barrels per day in September.

XAUUSD Forecast - 13th October 2020

XAUUSD Forecast – 13th October 2020

XAUUSD Forecast: Oil prices and the US Dollar

The USD rose during CFD trading today, Tuesday, against most of the major currencies, to recover from its lowest level in three weeks recorded in Monday’s session.

This comes with the market anticipation to announce the companies’ business results for the third quarter, amid expectations of some improvement from the effects of the Corona pandemic.

The USD index rose by 18:04 GMT by 0.5% to 93.5 points and recorded the highest level at 93.5 points and the lowest level at 93.03 points.

In terms of trading, US Nymex crude futures for November delivery by 17:58 GMT rose 2.4% to $ 40.3 a barrel and recorded the top price at $ 40.5 and the down price at $ 39.3.

Brent crude futures for Dec delivery rose 2.2% to $ 42.6 a barrel and recorded the top price at $ 42.6 and the down price at $ 41.6.

Author Mohammed Abdelkhalik

Professional Trader and Analyst, economist in Financial and Forex market since 2004.holds an MBA from the American University in Egypt. Mohammed works as an economic writer and technical & fundamental analyst for many international Forex and financial trading companies in both English and Arabic on a daily basis.