- WTI holds steady in Asia following a turbulent day of trade.
- Energy supply risks are surging, as competition grows between Asian and Europea
WTI is consolidated in Asia after oil prices slipped on Wednesday due to US crude inventories rising by more than anticipated and despite the gas/petrol crisis in the UK and energy crunch in China.
US crude stockpiles rose by 4.6 million barrels last week, exceeding expectations, boosted by a rebound in output as offshore facilities shut in by two US Gulf hurricanes resumed activity. In other related news, OPEC planned to maintain its deliberate approach to adding supply to the market.
On Wednesday, Brent crude settled down 45 cents to $78.64 a barrel, after reaching $80 on Tuesday. WTI prices lost down 46 cents, or 0.6%, to $74.83 a barrel. However, WTI spot added some 0.6% on the day. At the time of writing, spot WTI is trading at $74.70 and flat for the day so far.
Reuters reported that US oil, gasoline and distillate stockpiles rose last week, according to the U.S. Energy Department. U.S. output rose to 11.1 million barrels per day, roughly in line with where production was before Hurricane Ida hit about a month ago.
Meanwhile, the Organization of the Petroleum Exporting Countries and its allies including Russia, known as OPEC+, is reported to likely to stick to an existing deal to add 400,000 barrels per day (bpd) to its output for November when it meets next week, sources said, despite pressure from consumers for more supply.
As for China and the state of affairs in the UK, unprecedented power cuts in Northern China left millions without electricity. In the UK, fuel isn’t being transported to petrol stations from storage facilities is a lack of lorry drivers. When the UK formally left the European Union, it tightened immigration rules so that EU citizens can no longer work visa-free in Britain.
''Energy supply risks are surging, as competition grows between Asian and European nations to secure their supplies ahead of winter,'' analysts at TD Securities said.
''After all, delta-variant risks have proved benign, while global mobility continues to rebound, with expectations growing that air traffic will spark a continued rise in jet fuel demand, as departure levels increase significantly across both APAC and the US.''
''In this context, the US State Department is increasingly seeking to pressure Iran to return to the negotiating table, through backchannel negotiations seeking to curtail Chinese purchases of their crude. In response to the strong price action, WTI crude should see substantial CTA buying flow, supporting higher prices still.''
|Today last price||74.48|
|Today Daily Change||0.29|
|Today Daily Change %||0.39|
|Today daily open||74.19|
|Previous Daily High||76.51|
|Previous Daily Low||74.12|
|Previous Weekly High||74.15|
|Previous Weekly Low||69.35|
|Previous Monthly High||73.54|
|Previous Monthly Low||61.73|
|Daily Fibonacci 38.2%||75.03|
|Daily Fibonacci 61.8%||75.6|
|Daily Pivot Point S1||73.36|
|Daily Pivot Point S2||72.54|
|Daily Pivot Point S3||70.97|
|Daily Pivot Point R1||75.76|
|Daily Pivot Point R2||77.34|
|Daily Pivot Point R3||78.16|
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.