Commodity Market: US Crude Oil plunges to a 2 1/2-week low on reports US President Trump tests positive for COVID-19

Futures on US West Texas Intermediate Crude Oil extended losses from the prior trading day on Friday, while hitting a fresh 2 1/2-week low, as reports emerged that US President Trump had tested positive for COVID-19. Additionally, fuel demand concerns continued to persist with no US fiscal stimulus deal in sight yet.

Risk sentiment soured, mounting additional pressure on oil market, after President Trump said in a tweet that he and first lady Melania would go into quarantine to begin process of recovery. Reports stated that Hope Hicks, a senior advisor who had recently traveled with the president, tested positive for COVID-19 earlier.

Oil was already in the red after an agreement on more fiscal stimulus to cushion the impact from the pandemic had not been reached between the Trump administration and Democrat-led House of Representatives, which heightened concerns over weakening demand.

“It was a weak market already and this event has come along and added uncertainty, giving pause for people to say, ‘you know what, I’m taking some risk off the table’,” Lachlan Shaw, head of commodity research at National Australia Bank, said, cited by Reuters.

Accelerating virus spread continued to weigh on global oil consumption prospects as several countries have moved to impose tighter restrictions.

The latest data by the Center for Systems Science and Engineering at Johns Hopkins University showed total confirmed COVID-19 cases had already surpassed 34.312 million worldwide, with US cases now exceeding 7.278 million. Global death toll has surpassed 1.023 million, with more than 207,000 deaths reported in the United States alone.

As of 9:15 GMT on Friday WTI Crude Oil Futures were retreating 2.92% to trade at $37.59 per barrel, after earlier touching an intraday low of $37.22, or its weakest price level since September 15th ($37.06). WTI Crude Futures were poised for a second straight week of losses, being down 6.46%.

Brent Oil Futures were losing 2.90% on the day to trade at $39.54 per barrel, after earlier touching an intraday low of $39.42, or a price level not seen since September 15th ($39.40). Brent Oil Futures were on track for a second straight week of decline, being down 5.36%.

Daily Pivot Levels (traditional method of calculation) – WTI Crude Oil Futures

Central Pivot – $38.93
R1 – $40.26
R2 – $41.79
R3 – $43.12
R4 – $44.44

S1 – $37.40
S2 – $36.07
S3 – $34.54
S4 – $33.00

Daily Pivot Levels (traditional method of calculation) – Brent Oil Futures

Central Pivot – $41.07
R1 – $42.19
R2 – $43.67
R3 – $44.79
R4 – $45.92

S1 – $39.59
S2 – $38.47
S3 – $36.99
S4 – $35.52