Best Weekly Run Since 2015

Crude futures built on recent gains in the Asia-Pac session and are on track for the eighth straight weekly gain, the longest run of gains since 2015. WTI crude futures initially ticked lower on the release of the weekly DoE crude oil inventories data (one day delayed due to the Columbus Day holidays) with markets focusing on the considerably larger-than-expected build in headline crude stockpiles (+6.1mln bbls vs. Exp. +521k). This pressured front-month WTI futures to lows of $80.38, although losses were limited by the countering draw in gasoline inventories, at -2mln bbls vs. Exp. build of +947k. The drop was soon reversed and both WTI and Brent finished with gains, the outlook remains bullish and the contract is holding onto recent gains. Monday's fresh high confirmed an extension of the current bullish price sequence of higher highs and higher lows, reinforcing the uptrend. Note that the $80.00 psychological hurdle has also been cleared. The focus is on $82.89, a Fibonacci projection.