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Despite the temporary spark of optimism due to news of a new coronavirus vaccine, the oil price fell at the start of this week. The WTI oil price, in particular, was down 1.5% to $39.69 a barrel. This took place after the initial 8% jump in the oil price chart that followed Pfizer’s announcement of its 90% effective experimental treatment.
Those were the largest daily gains in the oil chart analysis in the last five months. However, as it appears, this surge in the oil price chart analysis was short-lived. And instead, the oil price analysis is giving way to concerns regarding fuel demand in the near term.
A viable vaccine will certainly have a beneficial effect on oil prices in the long-term, as was also underlined by JP Morgan. However, crude oil still remains a spot asset. And before the crude oil price analysis can see any substantial gains again, in needs to first overcome the ongoing supply and demand imbalances.
And with current lockdowns in most of Europe, the crude oil November forecast is looking grim. Movement restrictions are already leading to lower demand and despite the very brief spike in the oil price analysis, November is most probably going to see WTI oil and other brands suffer further declines.
As it is, experts foresee a drop in demand of 1 million barrels per day by the end of the year at least, which already says a lot about the following few weeks’ crude oil price (November), hence also the near-term WTI oil price forecast. And it’s certain that a few months will go by before the vaccine is made available and we can start making a more optimistic WTI oil forecast.
Watch the full video for our take on the crude oil price and find out what the oil price forecast next week might look like. And don’t hesitate to let us know in the comments what your take on the oil price today is.
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