Crude oil prices on Friday drifted slightly lower at the start of London’s trading session amid comments coming from OPEC+ most powerful political leader, Russian President Vladimir Putin stating his country was ready to extend supply cuts in the face of the ongoing COVID-19 onslaughts moving up at an exponential rate.
Both Brent Crude and West Texas Intermediate were down 0.3% at the time of writing. Also the two major oil contracts are heading for their first weekly decline in three weeks.
Just recently the Russian leader Putin disclosed that it was unnecessary for the oil cartel group in altering a deal on curbing crude oil output, as the virus continued to make headlines, coupled with the rising geopolitical uncertainty across global financial markets.
The Russian leader gave evidence on his ongoing efforts at supporting the fragile crude market, by having discussions with other oil superpowers that include the Saudis and the United States on how to support the fragile black fossil market.
Russia in the past had shown its resolve on supporting crude oil prices when it allied with the Organization of the Petroleum Exporters (OPEC), tagged as OPEC+ with the major objective of controlling crude oil supplies.
Oil traders are now sleeping with two eyes closed as major oil powers including OPEC battle hard to defend against the continual downside for crude oil prices via a more calibrated approach.
That said it’s unlikely for Brent crude prices to drop below $38.50/Barrel in the midterm amid strong reports disclosing the Food Drugs Administration approved Gilead’s remdesivir as a treatment for COVID-19 virus. This will certainly bring some oil bulls back.
However the outlook for crude oil still looks blurred at least in the near term, as the number of COVID-19 cases breaches the 41.5 million mark, and the highly contested U.S election comes to play, thereby keeping most oil traders on a wait and see approach.
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