Crude Oil Prices May Extend Drop After Covid-19 Surge, Biden Speech

FRIDAY’S ASIA-PACIFIC TRADING SESSION

With a relatively sparse data docket, traders will likely put an emphasis on macro-fundamental themes like Covid-19 medical metrics. An extension of the risk-off dynamic on the Wall Street trade may hurt crude oil prices in the upcoming session along with commodity-linked currencies like AUD and NZD. The haven-linked US Dollar and anti-risk JPY and CHF may extend their gains along with Treasuries.

CRUDE OIL ANALYSIS

Crude oil prices closed over 2.40 percent lower on Thursday, the worst one-day decline since June 24. Since breaking the March uptrend – gold parallel channel – Brent has traded sideways. A clear lack of a directional bias speaks to an underlying uncertainty not only in a technical sense but also fundamentally. Given the current circumstances, crude oil prices may continue to pull back in the upcoming session.

Crude Oil – Daily Chart

(Click on image to enlarge)

Crude oil chart created using TradingView

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