December 01, 2022 04:20 GMT
Oil Prices Hold Onto Gains On Demand Hopes And Tight Supply
Oil prices are down slightly today after rising 3% overnight and are trading in a very tight range of less than one dollar. Supply and demand news has resulted in oil holding onto its recent gains.
- WTI is trading at $80.40/bbl after a high of around $81/bb and Brent is about $86.70 after reaching $87.25.
- Brent has struggled to hold a break through resistance of $86.67, the November 25 high. Whereas WTI has cleared its November 25 high of $79.90 and $82.43 has opened up, the November 18 high.
- EIA data showed a large drawdown in US crude inventories of 12.58mn barrels after 3.691mn last week, the largest decline since June 2019, and consistent with the API data. US exports of crude and products also rose to a new record. There were reports from CNBC that US President Biden is looking to use additional reserves of both crude and heating oil for the winter.
- On the output side, there is still uncertainty surrounding the outcome of the weekend’s OPEC+ meeting.
- There are European and US November manufacturing PMI/ISM data later. There is also some Fed speak and US consumption and jobless claims data.