Brent Oil was trading 0.65% down at $85.27.
Oil was mixed Thursday morning in Asia, giving up some earlier gains as some investors scooped up profits from a recent rally. However, solid demand in the U.S. and a switch to fuel oil from coal and gas amid a global coal and gas shortage helped cap losses for the black liquid.
Brent oil futures inched down 0.08% to $85.75 by 1:05 AM ET (5:05 AM GMT), while WTI futures edged up 0.12% to $83.52.
“We saw some correction with Brent futures, but overall sentiment remained bullish as there have been no large increases in output by the U.S. or the Organization of the Petroleum Exporting Countries (OPEC),” Rakuten Securities commodity analyst Satoru Yoshida told Reuters.
“Brent could reach $90 a barrel later this year as tightness in global oil markets will likely continue as U.S. decarbonization efforts will cap output increases while demand will increase as more power companies switch fuel from coal and gas,” he added.
A tightening supply has meant an increase in prices, with OPEC sticking to its planned slow increase in supply. Oil refiners are increasing output to meet demand increases across Asia, Europe, and the U.S., but plant maintenance and high natural gas prices will likely constrain supply in the fourth quarter of 2021.
Meanwhile, Wednesday’s U.S. crude oil data from the U.S. Energy Information Administration (EIA) showed a build of 431,000 barrels in the week to Oct. 15. Forecasts prepared by Investing.com predicted a 1.857-million-barrel build, while a 6.088-million-barrel build was reported during the previous week.
Brent Oil , RSI Stood at 70.392, the current price is trading Above All the Moving Averages . So, a Buy trade can be executed with the following target and stop-loss:
TRADE SIGNAL-Brent Oil– Buy: 85.00, TARGET:-91.00, STOP LOSS:- 82.00.