Karachi, October 18, 2018 (PPI-OT): Crude Oil
The WTI Crude Oil market fell hard, reaching down towards the vital $70 level as the inventory number was an addition of 6.5 million barrels in America. That is much higher than the expected 1 million barrels, and of course a very bearish for crude oil. At this point, a lot of structural support here so it’ll be interesting to see whether or not it can hold. If the $70 region can hold as support, then it will probably continue to bounce. Keep in mind that the Iranian sanctions are in effect now, so there is a bit of bullish pressure there and the question is whether or not demand will pick up. The next 24 hours will be crucial and it would be on the sideways looking for a daily candle for the trade. Brent markets also fell hard during the trading session, crashing through the $80 level, and testing the $79 level as it has seen support before. If it break down below the $79 level, it would continue to go even lower.
Oil futures dropped yesterday, with the U.S benchmark ending below $70 a barrel for the first time in more than three weeks
Oil had been rising on worries about Iranian sanctions and tensions between the United States and Saudi Arabia
The global benchmark is trading nearly $7 below a four-year high of $86.74 reached on October 3
U.S crude stocks rose 6.5 million barrels last week, the fourth straight weekly build
The crude oil market is dangerously close to the $70
U.S crude oil stockpiles rose last week for the fourth straight week, led by a notable increase in inventories at the Cushing, Oklahoma, hub, while gasoline and distillate stocks fell.
Crude inventories rose 6.5 million barrels in the week to Oct. 12, nearly three times analysts’ expectations for an increase of 2.2 million barrels. Stocks at Cushing, the delivery hub for U.S crude futures, rose by 1.8 million barrels.
Prices sunk on the news, with U.S crude futures slipping through $70 a barrel for the first time in nearly a month. U.S crude was down nearly 3 percent to $69.82 a barrel, while Brent crude dropped 2.3 percent to $79.46 a barrel.
Net U.S crude imports rose last week by 1 million barrels per day, crude exports slipped to 1.8 million bpd. But for the last four weeks, exports averaged 2.1 million bpd, a 33 percent increase from the year-ago period.
Refinery utilization rates remained unchanged at 88.8 percent of capacity. Utilization rates in the Midwest, the second largest refining region of the country, fell to new record lows of 70 percent of available capacity, due to a combination of outages and scheduled maintenance.
Gasoline stocks fell by 2 million barrels, compared with analysts’ expectations a 1.1 million-barrel drop. Distillate stockpiles, which include diesel and heating oil, fell by 827,000 barrels, versus expectations for a 1.3 million-barrel drop.
The dollar index, which measures its value against six major peers, last traded at 95.703, little changed on the day, after rising to a fresh one weekhigh earlier in the day. 10 year Treasury yield last stood at 3.210 percent, 2.8 basis points higher than the U.S close.