WTI Crude Drop

August West Texas Intermediate crude futures fell nearly 1.50% during European session after facing a rejection near 40.50.

WTI failed to sustain the higher levels but on track to record weekly gains.

The growing fears of an increase in the numbers of cases with Covid 19 affected the market sentiment, and Those concerns overshadowed the optimism resulting from the stronger-than-expected US jobs report NFP in addition to the drop in weekly crude stocks. EIA data showed that US crude inventories fell 7.2 million barrels from the highest level, more than expected.

Losses can be limited by hopes of an economic recovery, especially after the Chinese services sector expanded at the fastest pace in a decade in June, as well as news that Russia is approaching OPEC’s goal to cut production.