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OIL: Crude Rises Further On Fed Cut Expectations, Supply Issues & Geopolitics

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Oil prices rose further on Tuesday supported by Fed rate cut expectations and reduced supply from the US, Libya and Kazakhstan. Hezbollah blaming Israel for exploding pagers in Lebanon added to geopolitical tensions in the Middle East which also boosted crude. The USD index is up 0.2%.

  • WTI rose 1.5% to $71.13/bbl to be down 3.3% in September but up 9% since the low on September 10. It reached a high of $71.92 on Tuesday before easing. The benchmark is currently around $71.17, maintaining the break above initial resistance at $70.97 opening up $73.61. Initial support is at $65.27, September 10 low.
  • Brent increased 1.3% to $73.70/bbl to still be down 4.1%. It reached a high of $74.28, just above initial resistance of $74.15 but it wasn’t held. Next resistance is at $76.96, 50-day EMA. Futures remain in a downtrend and the latest rally is corrective. The bear trigger is at $68.68.
  • Bloomberg reported that US crude inventories rose 1.96mn barrels last week, according to people familiar with the API data. Gasoline and distillate rose 2.3mn barrels each. The official EIA data is out later today.
  • Reuters is reporting that the US government will look to buy 6mn barrels of crude for the SPR to be delivered in the first few months of 2025.
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Oil prices rose further on Tuesday supported by Fed rate cut expectations and reduced supply from the US, Libya and Kazakhstan. Hezbollah blaming Israel for exploding pagers in Lebanon added to geopolitical tensions in the Middle East which also boosted crude. The USD index is up 0.2%.

  • WTI rose 1.5% to $71.13/bbl to be down 3.3% in September but up 9% since the low on September 10. It reached a high of $71.92 on Tuesday before easing. The benchmark is currently around $71.17, maintaining the break above initial resistance at $70.97 opening up $73.61. Initial support is at $65.27, September 10 low.
  • Brent increased 1.3% to $73.70/bbl to still be down 4.1%. It reached a high of $74.28, just above initial resistance of $74.15 but it wasn’t held. Next resistance is at $76.96, 50-day EMA. Futures remain in a downtrend and the latest rally is corrective. The bear trigger is at $68.68.
  • Bloomberg reported that US crude inventories rose 1.96mn barrels last week, according to people familiar with the API data. Gasoline and distillate rose 2.3mn barrels each. The official EIA data is out later today.
  • Reuters is reporting that the US government will look to buy 6mn barrels of crude for the SPR to be delivered in the first few months of 2025.