Oil Remains Highly Sensitive To Sentiment

Published 11/05/2020, 01:04 AM
Updated 07/09/2023, 06:31 AM

Oil remains a highly sentiment-sensitive beast of a trade. And it gets incredibly nervy, holding risk at the top of a rally knowing the oil rollercoaster can head downhill at an alarming speed at the first hint of a COVID resurgence.

In a case of exactly what the Doctor didn't order, the US reported over 102K new COVID-19 cases on Wednesday, a record high. Even with a vaccine in play, this headline is hitting the oil market like a ton of bricks as the US lawmakers will feel pressured to step ever so closer into a pre-holiday, economic crusher lockdown scenario at a critical time in the recovery, where even a soft or rolling lockdown could drive the final nail in the coffin for some servicing sectors.

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