Oil prices tried to extend gains after Russian President Vladimir Putin indicated he would be ready to extend record supply cuts in the face of the COVID-19 pandemic.

Brent crude fell 1 cent to $42.45 a barrel after rising 1.7% on Thursday. U.S. crude fell 2 cents to $40.62, following a 1.5% gain in the previous session. Both contracts were heading for their first weekly losses.

Putin said on Thursday that Russia did not see a need for major oil producers to change a global supply cut deal, but did not rule out extending oil cuts if market conditions allowed.

His comments were the clearest indication yet that Russia, one of the world’s top oil producers, is ready to extend unprecedented output curbs to meet a slump in demand caused by the pandemic.

Russia has been allied with the Organization of the Petroleum Exporting Countries (OPEC), led by Saudi Arabia, in implementing the output cuts, which are due to be lifted by the end of the year. Putin reinforced that the Saudi/Russian alliance remains intact and that they will continue to keep oil prices strong,” said Edward Moya, senior market analyst at OANDA.

Still, the continued rise in new COVID-19 infections in Europe and the U.S. is likely to cap prices, analysts said, with new coronavirus restrictions putting further pressure on fuel demand.

Several U.S. states reported record daily increases in infections on Thursday, further evidence that the pandemic is accelerating as colder weather sets in across much of the country. France extended a curfew for about two-thirds of the country’s population.

While the Belgian foreign minister is being treated intensively for COVID-19, as the second wave of the pandemic hits Europe. Here are the Market Movers, economic data, and market review for today, Friday, October 23, 2020:

  1. Pelosi's optimistic statement on the stimulus discussion was dismissed by the market after President Trump's tweet last night, reigniting the buying action of the US dollar.
  2. The final debate between the US presidential candidates takes place at 08:00 WIB this morning, potentially driving the US dollar.
  3. GBPUSD has the opportunity to move on the Retail Sales report at 13:00 WIB and the Manufacturing and Services PMI index at 15:30 WIB.
  4. A series of PMI indices for the manufacturing and services sectors of the Eurozone countries will be released between 14:15 - 15:00 WIB, and have the potential to move EURUSD.
  5. Meanwhile, the same data for the US will be released at 8:45 PM WIB later tonight, acting as a driver for the US dollar and potentially moving commodity prices as well as other major currencies.

Daily Pick

Today's prediction is on the GOLD pair, it is estimated to decrease, and the recommended OP is SELL at level 1900 with a profit target of 5-10 points and a stop loss of 3-5 points.

  • SELL 1900
  • TP1 = 1895
  • TP2 = 1890
  • SL1 = 1903
  • SL2 = 1905

Always prioritize Money Management and Risk Management.

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