- WTI holds in the bullish territory above the $70 level.
- The IEA cut its demand forecast for the third quarter.
WTI is trading 0.44% lower at $70.28 and has travelled between a low of $70.01 and a high of $71.19
Another storm threatens the US energy hub in the Gulf of Mexico named 'Nicholas' which has made landfall in Texas after being upgraded to a hurricane and will add to existing problems for coastal refineries and petrochemical facilities.
Meanwhile, the IEA cut its demand forecast for the third quarter, having highlighted that global oil supplies fell by 540k barrels a day in August thanks to unexpected disruptions and thus wiping out extra supply from OPEC+.
The IEA's Oil Market Report for September showed headline inventories down 34 million barrels month over month, to 2,850 million barrels in July, and are overall 516 mb/d undersupplied compared with the 2015 to 2019 average in the month.
Reuters reported that crude, gasoline and middle distillate inventories are drawing 40 million barrels month over month and undersupplied by 1,255 mb/d versus norms, to 2,010 million barrels, which is 113 million barrels below the 2015 to 2019 average of 2,123 million barrels.
''Middle distillate inventories during the month posted a strong showing after months of lag, declining 11 million barrels month over month to 571 million barrels, undersupplied by 813 mb/d versus norms and bringing stocks below the 2015-2019 average of 581 million barrels for the first time since March 2020, according to TPH.
Meanwhile, gasoline inventories were also undersupplied versus norms at 285 mb/d, with inventories drawing 15 million barrels month over month to 367 million barrels, which is below the 2015 to 2019 range with a lower bound of 372 million barrels.''
OPEC under eye
Meanwhile, analysts at TD Securities explained that l concerns are also brewing that OPEC+ may not manage to raise production, despite the group's plan to continue raising its output, as Russia's total production is struggling to keep up with its quota.
''On the horizon, more modest demand growth will see the market find balance, leading to concerns for energy traders as consensus expectations should see the market shift out of a deficit and into balance in coming months, but the upside for energy markets resides in supply risks.''
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.
Recommended content
Editors’ Picks
USD/JPY pops and drops on BoJ's expected hold
USD/JPY reverses a knee-jerk spike to 142.80 and returns to the red below 142.50 after the Bank of Japan announced on Friday that it maintained the short-term rate target in the range of 0.15%-0.25%, as widely expected. Governor Ueda's press conference is next in focus.
AUD/USD bears attack 0.6800 amid PBOC's status-quo, cautious mood
AUD/USD attacks 0.6800 in Friday's Asian trading, extending its gradual retreat after the PBOC unexpectedly left mortgage lending rates unchanged in September. A cautious market mood also adds to the weight on the Aussie. Fedspeak eyed.
Gold consolidates near record high, bullish potential seems intact
Gold price regained positive traction on Thursday and rallied back closer to the all-time peak touched the previous day in reaction to the Federal Reserve's decision to start the policy easing cycle with an oversized rate cut.
Ethereum rallies over 6% following decision to split Pectra upgrade into two phases
In its Consensus Layer Call on Thursday, Ethereum developers decided to split the upcoming Pectra upgrade into two batches. The decision follows concerns about potential risks in shipping the previously approved series of Ethereum improvement proposals.
Bank of Japan set to keep rates on hold after July’s hike shocked markets
The Bank of Japan is expected to keep its short-term interest rate target between 0.15% and 0.25% on Friday, following the conclusion of its two-day monetary policy review. The decision is set to be announced during the early Asian session.
Moneta Markets review 2024: All you need to know
VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.