Oil shrugs off higher U.S. crude stocks, strong dollar

Brent Oil  was trading 0.69% down at  $77.56.

Oil prices held steady on Thursday after rising above $80 a barrel this week, shrugging off bearish factors such as rising U.S. crude oil inventories and a strong dollar amid consensus that a supply deficit will stay for coming months.

Brent Crude for November delivery was up 21 cents at $78.85 a barrel by 0856 GMT on its expiry day while December loading crude was at $78.35. U.S. oil rose 32 cents to $75.15 a barrel.

U.S. oil and fuel stockpiles increased 4.6 million barrels in the week to Sept. 24 to 418.5 million, the U.S. Energy Department’s Energy Information Administration (EIA) said on Wednesday. [EIA/S]

In another typically bearish development, the U.S. dollar held near one-year highs, making oil more expensive for holders of other currencies.

But expectations of a continued supply deficit supported prices. Citigroup  is forecasting oil balances to be in a 1.5 million-barrel-per-day deficit on average over the next six months, even with continued supply increases

Brent Oil , RSI Stood at 60.180, the current price is trading Above   the Moving Averages 20 & 50 . So, a  Buy trade can be executed with the following target and stop-loss:

TRADE SIGNAL-Brent Oil– Buy: 77.50, TARGET:-83.50, STOP LOSS:- 74.50.

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