WTI Hovering Around a High Level Faces Greater Downward Pressure| KOL Forex Analysis•Jasper Lo

After plummeting to $-40 in April, WTI crude oil extended rally to as high as $42.51 in last month. Although it currently remains range bound between $42.51 and $38.50, there is possibility afterwards that it will settle lower and then stay weak.

WTI's unprecedented retaliatory rebound emerged because Saudi Arabia and Russia has ended the price war and cooperated to stabilize market by sharply reducing production. Meanwhile, the fresh highs in U.S. stocks coupled with the robust recovery in U.S. economy earlier also contribute to this rebound. Nevertheless, the current oil market will encounter two major challenges, inevitably leading to large adjustment in oil prices of high level.

This adjustment is pushed by the globally worsened pandemic. Under this condition, both aviation and tourism industry are getting worse. It is estimated that a mass of airlines and large travel agencies will close temporarily or even collapse, which will fatally shock oil prices. In addition, since the U.S. and even global economies were caught out by the worsened pandemic as well, financial markets are concerned over crude oil glut arising from lower demand.

The Organization of the Petroleum Exporting Countries and Russia agreed to loosen production caps by August, partly recovering the oil supply. Besides, financial markets forecast that the supply of U.S. shale oil will pick up continuously amid benefits from the swelling oil prices.

Investors will keep eye on the last trading day of WTI each time there is a crisis in oil prices. WTI crude oil for September delivery will expire on August 20, following wild fluctuation in mid-August. A breach below in WTI may see the support levels below distributed in $37.09, $34.37 and $30.72. As far as I am concerned, it will test lower till $30.72 before staying constructive and rangebound.

[About The Author]

Since 1987, Jasper Lo has been engaged in the financial industry

(forex, futures and gold) for more than 32 years and holds forex R.O.,

securities and futures broker licenses. Mr Lo is an expert in trading

forex, precious metals and commodity futures and an basic and technical

analyst.

Over the years, Mr Lo won many individual and team sales champion

awards, as well as outstanding employee awards. He was invited, as a

guest mentor, to the University of Hong Kong, Guangdong Ocean University

and Guangzhou Jinan University. And he was also appointed as the chief

training consultant by Hantang Securities and Dongguan Securities in

China.

Mr Los experience as guest of honor invited by media including Chinese and English newspapers and columnist:

-Guest of honor invited by TVB New Channels such as Finance Channel, Forex Focus, Global Watch

-Guest of honor invited by Now Finance Channel - Forex Reports

-Guest of honor invited by i-CABLE Finance Info Channel - Forex Opportunities

-Guest of honor invited by ViuTV - Investor Smarter Group

-Columnist of Finance and Forex Market of Ming Pao

-Presenter of Finance and Forex Forecast of Ming Pao

-Presenter of Investment 36 Stratagem and Technical Analysis in 1 Min of Ming Bao Finance

-Appointed lecturer of Ming Pao Investment Seminar and Paid Course

-Author of the best seller Investment 36 Stratagem

-Columnist of Forex Expert, Forex Analyst, Marathon Weekly of ET Net

-Guest of honor of Open Good Morning of ET Net

-Guest of honor of Metro Finance Channel - Market Opening, Instant

Market Fighting, Guangdong-Hong Kong Finance, Finances Power, Market

Analysis

-Guest of honor of New Era of Investment of RTHK

-Columnist of Capital Commodities of Capital Weekly

-Guest Presenter of Wang Guanyi Online Finance Channel - Fund and Commercial Bond

-Columnist of Wealthub Finance and Investment Smart Platform of Enrich Culture

-Guest presenter of Weekly Investment in the World of Enrich Culture

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