Oil to remain week amid growing coronavirus cases, expert says; check outlook here!

Crude Oil Outlook:  The uncertainty around the coronavirus pandemic is likely to impact crude oil, hitting oil prices further, Senior Technical Analyst Anuj Gupta said. He further said that the forthcoming US elections will also play on the price of the crude oil as the USD may see some weakness over the one-month period.  

He said that the markets will remain uncertain till the election results are declared. 

The October Crude oil futures were trading in a weak territory today around 1 pm on MCX. The oil futures were trading around Rs 2947 per BBL down by almost 0.7 per cent. Gupta said that the price may reach to Rs 2800 by the end of this week.  

As for the international price, the November WTI Oil futures will likely fall to USD 36, Gupta said. The oil futures were trading around USD 39.95, down by 30 cents while Brent Crude is likely to trade around USD 39 from the current levels of USD 41.56, he added. 

The technical analyst said that the current indicators give a weak outlook for crude oil, globally. In the Indian context, he said that the coronavirus situation has been on the rise. Though he did not see a full-blown lockdown situation in the near term, he said that any indication in that direction would be counterproductive. 

Prime Minister Narendra Modi has recently in his interaction with the Chief Ministers of 7 states asked them to reassess if lockdowns of one or two days were effective in containing Covid-19. He had also told them to make higher efforts to resume the economic activities while fighting the virus.

Meanwhile, Reuters reported that the rising coronavirus cases upset hopes for a smooth recovery in fuel demand, triggering the fall in oil prices on Monday. 

Brent is on track to fall for the first month in six while WTI is headed for its first monthly loss since April as the re-imposition of mobility curbs in some countries clouds the outlook on fuel demand recovery, the report further said. 

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"New COVID-19 case numbers are accelerating in major US states, renewing fears of mobility restrictions challenging the ongoing oil demand recovery in the last quarter," ANZ analysts said in a note, it said.