Categories: world

Oil drops to end a faint october

US. Inventories: On Wednesday, US Energy Agency reported that the raw stocks rose by 3.2 million barrels a week on…

US. Inventories: On Wednesday, US Energy Agency reported that the raw stocks rose by 3.2 million barrels a week on October 26, marking its sixth week with gradual increases. Prices had been under pressure after the American Petroleum Institute, an industry group, reported its own estimates of a 5.7 million barrel building. Analysts and traders surveyed by The Wall Street Journal had on average estimated an increase of 2.9 million barrels. Meanwhile, petrol stocks fell by 3.2 million barrels and distillery stocks were reduced by 4.1 million barrels.

Global Growth: Concerns that worsening global economic growth has weighed on stocks in recent weeks, with a major accident on volatile equity markets. Raw prices have fallen about 1

2% from the four-year highs achieved in early October. West Texas Intermediate on Tuesday fell to its lowest level since mid-August. An important point of contact is still the escalating trade disputes between the US and China when President Trump threatened fresh tariffs in Beijing this week. “Such threats are not good for the global economy’s health and, therefore, for the prospects for oil,” says Stephen Brennock, an analyst at PVM Oil Associates Ltd.

 US Energy Information Administration reported that raw stocks rose by 3.2 million barrels a week ended October 26th.

US Energy Information Administration reported that commodities rose by 3.2 million barrels a week ended October 26th.


Photo:

Yegor Aleyev / TASS / Zuma Press

US. Dollar: A stronger dollar is also pushing oil prices. The WSJ Dollar Index increased by 0.1% to 90.91 and has risen 5.7% year to date. Dollar-denominated raw materials are becoming more expensive for foreign investors, as the US currency is strengthened.

INSIGHT

Shares: Analysts continue to link the results in oil and stocks, both of which are susceptible to cracks in global growth expectations. On Wednesday, Dow Jones Industrial Average increased 1% and S & P 500 increased 2.1%. “I think the market will be very sensitive to shares,” said Kyle Cooper, ION Energy consultant. “If stocks do not find the bottom, you can see” oil prices go lower.

Speculative Investors: “We are now on the last day of October and exchanges have seen a huge erosion of speculative hausse since the Brent Prize touched $ 86 a barrel in the first week of this month, analysts wrote at the consultancy agency JBC Energy in a daily listing Wednesday. “Net long positions in the rough among money managers have shrunk by a total of 260,000 parties over the last four weeks,” they added.

OPEC: All eyes are on Iran, a key member of the organization of petroleum exporting Iran’s raw exports have already fallen by about 800,000 barrels a day since President Trump pulled the United States out of an international agreement from 2015 to fight Iran’s nuclear programs, which set the stage for rehabilitation. Oil market actors are carefully looking to see if Saudi Arabia, de facto manager of OPEC and its production associations, including e Russia, will be able to fill the gap after reducing Iranian supply.

AHEAD

  • Royal Dutch Shell PLC releases quarterly earnings on Thursday.

Write to Christopher Alessi at [email protected] and Stephanie Yang at [email protected]

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