Crude Oil Analysis: Oil Waivers Raises Risk of Key Support Break

Crude Oil Analysis: Oil Waivers Raises Risk of Key Support Break

Crude Oil Analysis: Oil Waivers Raises Risk of Key Support Break

The oil market has a bullish catalyst ahead as USA actions against Iran will become official Sunday, Kilduff said.

The supply surge is increasingly finding a home overseas, as USA refiners reach the maximum they can handle of the light, low-sulfur oil coming from shale plays.

Traders said oil was lifted along with Asian stock markets after a phone call between the USA and Chinese presidents raised hopes that the trade dispute between the world's two biggest economies could be resolved.

Russian Federation is pumping oil at a post-Soviet high, US crude output has topped 11 million barrels a day and a Reuters survey of OPEC production shows the group more than made up for any declines in Iranian shipments in October.

The company said that Syncrude operations in Canada were impacted by a power supply disruption that began in late June with recovery by the middle of September, and highlighted progress in exploration during the quarter in Guyana while it increased rights for exploration areas in Brazil. "The focus has shifted, leading to a sell-off by hedge funds, and that's causing the slide".

U.S. West Texas Intermediate (WTI) crude futures advanced 28 cents, or 0.4 percent, to $66.46 a barrel on Wednesday. Total motor gasoline supplied (the agency's proxy for demand) averaged 9.2 million barrels a day for the past four weeks, about flat compared with the prior week's average.

The price of December futures for WTI rose to 66,49 United States dollars per barrel, up 0.47 percent. Exports of refined products rose by 6,000 barrels a day last week to remain at about 5.35 million barrels a day. Meanwhile, Brent further increased 0.74 dollars to 77.63 US dollars per barrel.

Adding to the negative impact, the Organization of the Petroleum Exporting Countries (OPEC) increased oil production in October to 33.31 million barrels per day (bpd), the highest by OPEC since 2016. While Indian officials were unavailable for formal comment, MEA spokesperson Raveesh Kumar had said on Thursday, "We will continue to engage with the United States and other stakeholders to ensure that our energy security is not compromised and also that our national interests are protected".

Despite these efforts, waivers are likely to be only temporary. Reports said the White House was drafting a trade agreement to be taken up with Beijing during US President Donald Trump and China President Xi Jinping's meeting on the sidelines of the G20 Summit at the end of this month. That's a post-Soviet record, and not far off the highest-ever production.

In a bearish signal, the American Petroleum Institute reported USA crude inventories rose 5.7 million barrels last week, more than analyst forecasts for a 4.1 million-barrel build.

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