Crude Oil price struggles to find an upside direction as the oversupply concerns increase after data from both the EIA and API showed a surprise build in US crude inventories last week. According to the EIA Petroleum Status Report, US crude oil stocks rose by 5.654 million barrels in the week ended July 3rd, 2020 and the API report also shows a build of 2 million barrels in crude oil inventories. The Oil investors and trader’s attention now turns towards the OPEC and its allies (OPEC+) meeting scheduled on July 15 for fresh updates on the oil output cuts policy.
US stock futures continues the second-day decline as fears over increasing coronavirus cases worldwide- globally, 227,000 fresh cases were reported on Thursday. On Friday, Asian equity markets followed up on US session losses. In South Korea, the Kospi index was down 0.55% and the Shanghai Composite was down 1.05% and Hong Kong’s Hang Seng Index fell 1.76%.
Crude Oil prices dropped to near the weekly low on Friday as surging global coronavirus cases raised fears that fuel demand is likely to remain subdued. The benchmark Brent crude fell more than 2% to around $41.3 a barrel.
US dollar rebounded from the fresh week low on Thursday after the news that the US Supreme Court has ruled that the prosecutors could examine President Trump’s financial records in New York. The news appears to have added extra uncertainty to the US political scenario ahead of the general elections in November.
Gold price edged lower on Friday after jumping to a 9-year high in the previous session and during the European session the yellow metal dropped to a fresh session low of $1795.
On Thursday, Federal Reserve policymaker Bostic said that he did not see the US economy returning to its pre-crisis level “until mid-2021 or maybe later into 2022” but he did see “more jobs and more growth” by the end 2020.
On the data front, the US Labor Department reported the Initial unemployment claims fell by a seasonally adjusted 99,000 to 1.3 million for the week ended July 4.
The number of people infected with the coronavirus across the world rose towards 12.3 million, of which around 554 thousand have died, according to Johns Hopkins. As per media reports, 3 million Americans have already been infected with the coronavirus, with a daily record of more than 60,000 new cases and death tolls around 134,000. Meanwhile, In the UK, beauty services will be allowed to re-open from 11th July and gyms and other leisure facilities from 25th July.
GOLD: Gold price slightly rebounded from the early losses and at the time writing the bullion trading above $1805.
The important levels to watch for today: Support- 1790 and 1778 Resistance- 1806 and 1818.
EUR/USD: The currency pair trading above 1.1290 after slipped to a fresh daily low of 1.1255 during the early session.
The important levels to watch for today: Support- 1.1240 and 1.1190 Resistance- 1.1310 and 1.1340.
Quote of the day: Successful trading is always an emotional battle for the speculator, not an intelligent battle- Jesse Livermore.