Oil on track to close its second consecutive week of losses

Oil is heading to close its second consecutive week with losses, for the first time since April, when its price plummeted as a result of the confinements decreed by governments to curb the coronavirus pandemic.

WTI futures contracts that expire in October accumulated a weekly decline of close to 6% at mid-morning on Friday to around $37. Last week, it closed down 7.45%. Brent futures contracts, the benchmark in Europe, which expire in November, are also about to close with a weekly loss of 6%, which joins the 5.31% of last week, on the verge of losing $40.

Doubts about the recovery in demand continue, especially after the US Energy Information Agency (EIA) reported an increase in stocks yesterday for the first time in the last six weeks, with 2 million barrels more, after a decrease was expected. Now, all eyes are on the Organization of the Petroleum Exporting Countries (OPEC), who are scheduled to meet telematically next week.

Source: Admiral Markets MetaTrader 5. WTI Futures CFD Daily Chart. Date range: December 2019, to September 11, 2020. Prepared on September 11, 2020, at 11 a.m. Keep in mind that past returns do not guarantee future returns.

Source: Admiral Markets MetaTrader 5. Brent Futures CFD Daily Chart. Date range: December 2019, to September 11, 2020. Prepared on September 11, 2020, at 11 a.m. Keep in mind that past returns do not guarantee future returns.

In the last four years, oil has achieved a certain price recovery, but lately has not been able to reach nor come close to the record prices prior to 2014, when it was between $90 and $100.

You can take advantage of the movements generated by publications related to the oil market with a demo or live trading account and by analyzing your own charts using the most popular trading platform, MetaTrader 5. Admiral Markets UK Ltd provides the free download of the platform, you just need to click on the following link:

INFORMATION ON ANALYTICAL MATERIALS:

The data provided provides additional information on all analyzes, estimates, forecasts, forecasts, market reviews, weekly outlooks or other evaluations or similar information (hereinafter “Analysis”) published on the Admiral Markets website. Before making any investment decisions, pay close attention to the following:

1. This is a marketing communication. The content is posted for informational purposes only and should not be construed as investment advice or recommendation. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and is not subject to any prohibition on pre-dissemination of investment research.

2. Each investment decision is made by each client alone, while Admiral Markets UK Ltd (Admiral Markets) will not be liable for any loss or damage arising from such a decision, whether based on content or not.

3. In order to protect the interests of our clients and the objectivity of the Analysis, Admiral Markets has established relevant internal procedures for the prevention and management of conflicts of interest.

4. The analysis is prepared by an independent analyst, Carolina Caro, SEO implementer (hereinafter “Author”) based on personal estimates.

5. While all reasonable efforts are made to ensure that all sources of content are reliable and that all information is presented, as much as possible, in an understandable, timely, accurate, and complete manner, Admiral Markets does not guarantee accuracy. or integrity of any information contained in the Analysis.

6. Any past performance or modelling of the financial instruments indicated in the content should not be construed as an express or implied promise, guarantee, or implication of Admiral Markets for any future performance. The value of the financial instrument may rise and fall, and the preservation of the asset’s value is not guaranteed.

7. Leveraged products (including contracts for difference) are speculative in nature and may generate profit or loss. Before you start trading, make sure you fully understand the risks.