WTI is trading with steady to up around $81.00 and appears susceptible approaching a 2-month trough. It is in a negative trend at the moment.
Key Points & Considerations
US crude WTI is down for the 3rd session in a row and is close to a 2-month bottom.
Concerns of supply interruptions amid a Middle Eastern war continue to impact on the price of oil.
Concerns that the Chinese slowing economy may reduce consumption of fuel add to the suggested tenor.
Crude prices for oil fell for three days in a row on the third day remaining around a 2-month trough reached the day before. Throughout the Asian trading, crude oil has remained under the $81.00 per barrel threshold, before climbing back. Which is set to fall lower as supply-chain fears ease.
WTI Crude oil prices rose early on Wednesday after falling sharply at the outset of the workweek. Investors are on alert while they anticipate the Federal Reserve’s speech while keeping a tight watch on events in Gaza
The Fed is anticipated to hold interest rates steady, that would prove good for crude oil. While the ECB having identical opinions after a flash assessment of European inflation revealed it had decreased significantly in Oct.
From the negative side, Brent crude fell for the initial time in a span of four months. Implying that customer demand increase has proven sluggish than it would have liked been. Particularly considering that the drop occurred in spite of the outbreak of fighting among Gaza and Israel. Which increased the possibility of supply interruptions
| Futures & Indexes | Last | Change | % Change | Last Updated | |
| WTI Crude | 81.37 | +0.35 | +0.43% | (11 Minutes Delay) | |
| Brent Crude | 85.40 | +0.38 | +0.45% |
Chinese Demand is a concern
Market traders are less worried about the possibility of more Arab nations joining the Gaza conflict and a region-wide supply interruption. In addition, according to a Reuters poll, OPEC oil production increased by 180K, (bpd) in Oct. In addition, the EIA reported on Tuesday that American crude oil field output reached a fresh month high of 13.05 million bpd in Aug. Which combined with lower Chinese economic activity statistics, raise fears over decreasing gasoline consumption from the globe’s largest oil user and weighs on the crude.
Source: EIA
China’s Manufacturers PMI surprisingly dipped towards shrinkage zone in the month of October. According to the government PMI issued by the NBS on Tuesday. whereas the other industries PMI indicated a decrease in the large service industry and building. A Caixin-sponsored study likewise supported the government’s numbers, revealing that manufacturing in China dropped in Oct.
Technical Analysis
Support and Resistance & Pivot (PP)
R3 = 85.21 R2 = 84.15 R1 = 82.64 PP = 81.58 S1 = 80.07 S2 = 79.01 S3 = 77.5
