Oil prices stable as rising U.S. crude stocks balance supply concerns
26 Oct 2022
BRENT CRUDE OIL is trading up 1.05% at 92.19
Oil prices were broadly stable on Wednesday, moving in and out of negative territory after industry data showed U.S. crude stockpiles rose more than expected last week, though supply concerns and a weaker dollar gave support.
Brent crude futures for December were up 12 cents, or 0.1%, at $93.64 a barrel by 1045 GMT. U.S. West Texas Intermediate (WTI) crude futures for December were up 37 cents, or 0.4%, at $85.69 a barrel.
A weaker U.S. dollar sent a bullish signal, making oil cheaper for holders of other currencies.
But U.S. crude inventories rose by about 4.5 million barrels in the week ended Oct. 21, according to market sources citing figures from the American Petroleum Institute, an industry group, above expectations from five analysts polled by Reuters.
Official U.S. stockpile data from the government’s Energy Information Administration is due at 1430 GMT.
Rising stockpiles reinforce fears of a global recession that would further cut demand, weakness in which has also been apparent in softer Chinese crude import data.
But ongoing supply constraints, highlighted by the International Energy Agency’s head warning of the “first truly global energy crisis”, gave prices a floor.
Saudi Aramco (TADAWUL:2222)’s CEO said there were many uncertainties ahead of planned European embargoes on crude and refined products from Russia, a member of the OPEC+ alliance led by Saudi Arabia, adding however that Russian oil still found buyers.
On technical fronts BRENT CRUDE OIL:RSI stood at 47.68 and currently it is trading below 20 and 100 days MA & above 50 days MA. So, SELL position can be taken with following target and stoploss: