Prices Of Crude Oil Might Extend Decline After Coronavirus Surge

Wall Street Stocks, Coronavirus, Singapore Election, Crude Oil Prices – Key Points

  • Prices of crude oil suffered the biggest decline in a single day.
  • Risk-off tilt boosted by the speech made by Joe Biden, the Democratic presidential candidate
  • Wall Street stocks drop after Florida medical stats show an alarming behavior
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The Democratic presidential candidate has halted the Wall Street stocks, initially by the alarming medical stats from Florida and then by the populist speech. The S&P 500 and Dow Jones indices closed 0.57 and 1.38 lower, respectively. With the Nasdaq index, tech-leaning closed just above 0.53%.

Nasdaq’s strength highlights the elasticity of the tech-leaning equities amidst coronavirus pandemic. This impressive rise seems to have been a larger part because of the work from home practices. These policies have created additional demand for the web-based services. The greatest loser in the sector-focused Dow Jones indices as fuel subcomponent, and particularly Gas, Oil, and other Consumable Fuels industry.

The huge drop in S&P 500 indices came after Florida released a report that the coronavirus related deaths rose to about 120. The previous report had reported the deaths at48. Additional hospitalization also showed 409 readings, which was much higher than the 333 reports. These alarming medical stats exacerbated the increasing fear that other surge in COVID-19 can compel officials to re-implement of extended growth affecting the lockdown measures.

The cycle-sensitive commodities, crude oil has been hit by the concerns and might have made contribution hence dragging the Norwegian Krone down. Potentially not complexly by confidence, the Oil & Gas linked Norwegian Krone was the trader’s worst-hit G10 currency. In other words, this sour mood stimulated haven demand and nudged the USD and treasuries higher. The Swiss franc and the Japanese yen also climbed.

These changes were further boosted by the speech made by Joe Biden, in a popularity speech that he gave concerning the Pennsylvania policy. The democratic presidential candidate indicated that its time to end the shareholder capitalism era. Further stating that the Wall Street CEOs and bankers did not build the USA. Such a populist commentary might become more common as the general election approaches.

Fridays Asia-Pacific Trade Session

With the significant sparse data tag, investors will most likely focus on macro-fundamental themes such as coronavirus pandemic stats. The extension of wall streets risk-off dynamic trade might adversely affect the prices of crude oil in the next session alongside the commodity-oriented currencies such as NZD and AUD. The anti-risk CHF and JPY and the haven oriented USD might extend the gains alongside the treasuries.

Crude Oil Technical Analysis

The prices of crude oil closed just above the 2.4% lower on Thursday, the biggest single-day drop since 24 June. Since it broke the march upside, the gold parallel channel, Brent has been trading sideways and crude oil price analysis. As a result, it lacks the directional bias to the current uncertainty. Not just fundamentally, but also in a technical sense. Considering the existing circumstances, the prices of crude oil might continue pulling back in the next session.

Crude Oil Chart

Crude-Oil-Prices

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