09.07.2020
Market commentary on heating oil 09.07.2020
For several weeks now, prices have been drifting in a fairly stable sideways channel. Upward potential continues to be limited by the constantly rising number of infections during the pandemic and the resulting fears of demand slumps due to renewed lockdowns. On the other hand, prices are unlikely to fall much further, as oil-producing countries have recognized the seriousness of the situation and are adhering to the agreed production quotas. Support for prices is also coming from the global stock markets: after a brief COVID-related pause, there is once again a true gold rush atmosphere, with one record high after another being set in the major indices. However, this constellation also carries risks; a stock market crash would, of course, have serious consequences for oil prices as well.