Crude Oil Futures are up for a fourth consecutive week. Higher prices tempt producers but demand uncertainty lingers, David Chambers from Charles Schwab reports.
“Reopening economies around the world will likely prove very difficult, so the volatility in oil prices may be far from over. Fears of a second wave linger.”
“If oil prices continue to stabilize, producers in the U.S. and OPEC+ may find it difficult to avoid the temptation of re-opening the spigots. Global oil shipping rates have been ticking down which may hint at a moderation in the supply glut.”
“Thursday’s RSI above 70 may have hinted at overbought conditions, confirmed by Friday morning’s selloff which brought the RSI reading down to near 50.”