Crude Off Highs, US Stocks Down Again

Oil prices are off their intraday highs to be up only 0.1% on Tuesday. Crude corrected in line with the risk off tone and when the dollar rose following strong US building permit data. Brent broke through $95 and spent much of trading above this level on Saudi comments that it aims to stabilise the market but it couldn’t hold the move in the end. Recent strength is driving increased expectations that oil will reach $100/bbl but indicators suggest it is overbought and thus vulnerable.

• Brent finished up 0.1% to $94.53/bbl but it reached an intraday high of $95.96 before correcting to a low of $94.16. Resistance is at $96.95, 14 November 2022 high.
• WTI is also 0.1% higher and closed at $90.70 but has started today slightly lower at $90.65. It reached a high of $92.43 but then fell to $90.31. Resistance is at $94.66.
• Bloomberg is reporting that US crude inventories fell 5.25mn barrels last week, according to people familiar with the API data. Gasoline stocks rose 732k but distillate fell 258k, as shortages continue globally heading into the northern hemisphere winter. Falling inventories are adding to supply concerns.