According to Motilal Oswal, Price action suggests traders are waiting for a catalyst to trigger the next major move and looking at the second wave triggers, markets will remain to the downside with WTI trading to the weak sides of levels of $36-35.
Motilal Oswal's report on Energy Weekly
Crude prices ended the week on lower note, marking its first weekly fall since April as new U.S. coronavirus cases spiked, stoking fears of a second wave of the virus hitting fuel demand. The combination of the Fed forecasts and a second call for restrictions could trigger another plunge in crude oil prices. Markets are once again worried that pandemic may be far from over and has brought the rally to a halt, with about half a dozen U.S. states reporting spikes in new infections, leading to less people driving, less demand for gasoline.
Outlook
Price action suggests traders are waiting for a catalyst to trigger the next major move and looking at the second wave triggers, markets will remain to the downside with WTI trading to the weak sides of levels of $36-35. Total US coronavirus cases topped 2 million, with new infections rising slightly after five weeks of declines. If we get into a situation where we start to take steps back with the coronavirus, the market is going to go down.
For all commodities report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.Join the Moneycontrol Rule the New Normal powered by Lenovo webinar on the 18th of June. REGISTER NOW!
Read More
