Karachi, June 13, 2018 (PPI-OT): Crude Oil
The Oil market initially dipped yesterday session but turned around the show signs of strength and gain 0.75%. The $67 level above will be resistance, but it will probably break above it, because it is minor in its resistance and support over the past. Economists think that if it can break above there, the market should continue to go towards the $68 level and beyond. Short-term pullbacks should be supported down at the $65 level, and if it broke down below the $64.50 level, the market could unwind rather rapidly. However, the rounded bottom in this market suggests that it is trying to build up the upward momentum. Brent markets were very noisy as well, initially pulling back to the $76 level, an area that has seen some action as of late. It looks like it could go higher. If it break down below the $74 level, that would negate everything and send this market much lower.
U.S Oil prices finished higher for a second session, but Brent oil falls after OPEC report
Prices got a boost ahead of data that are expected to show a weekly fall in domestic crude inventories
Oil market outlook in the second-half of 2018 is highly uncertain and warned of downside risks to demand
OPEC oil production increased by 35,000 barrels a day in May to average 31.87 million bpd
Iraq, Iran, and Venezuela have all made comments declaring that OPEC should resist pressure to increase oil supplies
Oil prices fell today, pulled down by rising supplies in the United States and expectations that voluntary output cuts led by producer cartel OPEC could be loosened.
Brent crude futures, the international benchmark for oil prices, were at $75.65 per barrel, down 23 cents or 0.3 percent, from their last close. U.S West Texas Intermediate (WTI) crude futures were at $65.99 a barrel, down 37 cents or 0.6 percent from their last settlement.
The Organization of the Petroleum Exporting Countries (OPEC), together with some non-OPEC producers including Russia, started withholding output in 2017 to reduce a global supply overhang and push up prices.
In the United States, the American Petroleum Institute (API) reported yesterday that crude oil inventories rose by 830,000 barrels in the week to June 8, to 433.7 million.
The rising stocks are in part a result of the surge in U.S crude oil production, which has jumped by 28 percent in the last two years, to a record 10.8 million barrels per day.
With output in Russia rising back above 11 million bpd in June and Saudi production climbing back above 10 million bpd, supplies from the top three producers are increasing.
With rising production from U.S shale adding to oil’s woes and reviving oversupply concerns, further downside could be a possibility in the short to medium term. Official U.S production and inventory data is due to be published today by the Energy Information Administration (EIA).