After trading around the $40 per barrel level since early June, the NYMEX crude oil futures market has been spending more time below the pivot point than above since early September.
While inventories have declined and production is lower worldwide, the coronavirus continues to threaten demand for the energy commodity. Seasonality is also weighing on the price as we move towards the coldest period of the year in the northern hemisphere. Crude oil and product demand tend to decline during the winter months.
On the continuous NYMEX crude oil futures contract, technical support stands at the low from the week of September 8 at $36.13. Last week, the price traded to a low of $36.63 per barrel. Below there, the next level of support is at the mid-June low of $34.36 per barrel.
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