Oil prices deepen losses pending US inventory data

Mohammed Abdelkhalik
September 29, 2020

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Oil prices declined during trading today, Tuesday, despite the dollar’s ​​decline against most of the major currencies, in anticipation of the weekly crude inventories report.

Investors are closely following the developments in global demand for crude, with the return of lockdown restrictions in several countries due to the increase in Coronavirus infections.

The number of people infected with Coronavirus worldwide has exceeded 33 million, while more than a million people have died so far.

oil prices
Later today, the American Petroleum Institute is expected to announce preliminary data on oil stocks in the United States, while the Energy Information Administration will release its official data tomorrow.

Oil prices fell although the USD decline

The dollar fell against most of the major currencies during trading today, Tuesday, in light of the close follow-up by investors of the developments in the presidential elections in the United States.

The markets are closely watching this week the first election debate between the Republican candidate for the US presidential elections, “Donald Trump” and his Democratic rival, “Joe Biden.”

Analysts cast a negative view of the dollar due to the US elections and expect more volatility in financial market movements.

Trump’s popularity has declined in recent opinion polls, while his rival, Joe Biden, has taken steps against him, but US President Trump’s campaign sees these polls as false.

Later this week, the monthly jobs report in the United States will be released to know the state of the labor market, while next Thursday, the final reading of the GDP will be released.

In terms of trading, the dollar index fell (against a basket of major currencies) by 19:48 GMT by 0.4% to 93.9 points, and recorded the highest level at 94.3 points and the lowest level at 93.8 points.

In terms of trading, US Nymex crude futures for November delivery by 18:41 GMT decreased by 3.9% to $ 39 a barrel and recorded the highest price today at $ 40.7 and the lowest price at $ 38.4.

Brent crude futures for November delivery fell by 3.8% to $ 40.8 a barrel and recorded the highest price at $ 42.5 and the lowest price at $ 40.4.

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.