Investing.com – Oil posted a fourth straight month of wins in August, while crude prices remained stuck in a range below $45 per barrel as demand for fuel remained questionable amid the coronavirus pandemic.
New York-traded West Texas Intermediate, the benchmark for U.S. crude futures, settled the day down 36 cents, or 0.8%, at $42.97 per barrel. For August though, WTI showed a gain of 4.6%, its fourth straight monthly increase.
London-traded Brent, the bellwether for global crude prices, closed the New York session down 53 cents, or 1.2%, at $45.28. For August, Brent rose 5.8%.
Aside from doubts about demand for fuel caused by Covid-19 business interruptions, price charts for crude appear to be displaying weakness as well.
“Both Brent and WTI are pushing against their 200 daily moving averages to the upside and are clearly still seeing strong resistance,” said Craig Erlam at online trading platform OANDA.
So far, analysts are only hedging on higher oil prices in 2021.
Goldman Sachs (NYSE:GS) said in a note that it had upped its Brent forecast for next year’s third quarter by $5 a barrel to $65.
“While current lackluster fundamentals (or a cross-asset risk-off event) could still lead to a short-term spot sell-off, we find a compelling risk-reward for going long deferred Brent prices, and recommend a long Dec-21 Brent position,” it said.
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