Oil Price Basic Daily Forecast – Prices Continue Easily at COVID-19 Demand Destination Concern

Refinery profits may benefit from a drop in lift demand

Although the ongoing outbreak threatens demand, a group of analysts see it as a potential benefit for refineries struggling to make a profit.

Eurasia analysts said in a note, the outbreak is jeopardizing hopes for a global economic recovery that could reduce diesel fuel demand from aviation gas, although the price drop could see refinery profits return to positive territory Can bring.

“This will be a major step forward and will likely be a signal to the industry that crude production and processing capacity reductions have met their targets in adjusting the industry to lower demand,” it said.

China factory gate prices fall for the seventh straight month in August

In news affecting future demand, China’s factory gate prices fell for the seventh straight month in August, but at the slowest annual pace since March, with the world’s No. 2 economy industries accelerating a coronovirus-induced recession Continued to recover from.

The National Bureau of Statistics (NBS) said on Wednesday that the Producer Price Index (PPI) fell to less than 2.0% in August from a year earlier. This was in line with expectations in a Reuters poll, but the decline was more modest than the 2.4% drop in July.

The Consumer Price Index (CPI) meanwhile rose 2.4% over the previous year, slower than the 2.7% annual growth in July.

Daily forecast

Prices are likely to continue for a near-term until the price hits the chart on the chart that proves attractive to buyers. However, do not mistake this for a change in demand outlook. If they can store it for later use, users will buy oil relatively cheaply. This is why prices go down in the first place.

We may see a technical boom due to short-term oversold conditions, but any meaningful short-covering rally is likely to be bounced by aggressive short-sellers. No one likes hole reduction, even if they feel that prices are continuing to fall, so in some cases the best thing to do is to wait for a rebound rally.

Due to Monday’s Labor Day holiday, there will be no US Energy Information Administration weekly inventions reported on Wednesday. It has been moved on Thursday. However, the American Petroleum Institute will release its weekly figures at 14:30 GMT.

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