​Oil Demand Limited Its Price Trend

WikiFX News (5 July) - Recently oils strong resistance level is at 40-41 USD, which manifests slightly mitigated risk aversion in market. However, oil price is unlikely to be strong due to the oil demand under the outbreak of coronavirus pandemic.

According to Citibank on July 1, the increase of oil demand may never reach the pre-coronavirus level. Whats worse？ WHO reported over 10.3 million confirmed coronavirus cases globally, and being the biggest economy in the world, the coronavirus situation in the US is most concerned by the market.

Whether the second wave of coronavius pandemic or economic activities suspension due to COVID-19, both will affect the oil demand significantly.

According to the data by IATA, the load factor of global airlines is 50.7% in May, a record low. And the traffic volume is expected to drop by 36% at the end of 2020.