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WTI Crude futures are currently trading at $69.42-lower by 0.82% as compared to the previous closing. Oil prices dropped on Thursday as the fourth weekly increase in U.S. crude inventories suggested ample supply, while Saudi-U.S. tension and falling Iranian exports lent support.
Brent crude futures were trading at $79.59-lower by about 0.89% at the time of writing. It has dropped by more than $7 from a high of $86.74 reached on Oct. 3.
The EIA reported on Wednesday that US crude inventories rose by 6.5M barrels for the week ended 12th October. It was the fourth straight weekly increase and almost three times what markets had forecast.
In a related report that is published by API every week, the API reported on Tuesday that U.S. crude inventories fell by 2.1M barrels for the week ended Oct. 12.
In news related to Iranian crude exports, according to an Iranian shipping source and data on Refinitiv Eikon, an unprecedented volume of Iranian crude oil is set to arrive at China’s northeast Dalian port this month and in early November before U.S. sanctions (4th November) on Iran take effect. A source from the National Iranian Tanker Company said the company is shipping more than 20 million barrels of oil to Dalian. Sources also disclosed that when the tankers reach Dalian, the company will decide whether to sell it to other buyers or to China.
In other major news, Turkey’s top refiner, Tupras, is in talks with U.S. officials to obtain a waiver allowing it to keep buying Iranian oil after Washington reinstates sanctions on the Islamic Republic’s energy sector in November, industry sources said. NATO member Turkey depends heavily on imports to meet its energy needs and neighboring Iran has been one of its main sources of oil because of its proximity, the quality of its crude, and favorable price differentials.
On the technical front, the RSI is currently at 37.36% and suggests that the market can move in the downward direction. The %K has crossed the % D from above to the downside at 20.01%, and this suggests that the market may head downwards. The current price is below the MA5.
Overall Bias is Negative and short-term trades can be initiated with tight Stop Loss and Profit targets.
Trade Suggestion-Limit Sell At 69.85, Take Profit At 68.85 Stop Loss At 70.35