Free Trial

Oil Prices In A Holding Pattern As Market Struggles With Conflicting Forces


Oil prices are up slightly on the day as markets continue to struggle between signs that the market is tight and global demand concerns. WTI is up about 0.4% to around $86/bbl and the 20-day moving average held as a floor for prices. Brent is up around 0.4% to $92/bbl.

  • The Whitehouse is planning an announcement this week relating to a release from the strategic oil reserve of a possible 10 to 15 million barrels to ease pressure on gasoline prices ahead of the mid-term elections, according to Bloomberg. There is also talk of an export cap being imposed on diesel and gasoline in November.
  • The oil market remains worried by the impact that China’s continued Zero-Covid policy will have on demand.
  • On the supply front, the OPEC+ output cuts hit in November, there’s been unwinding of investments in Russia by foreign entities, and the US EIA also reduced its shale-oil supply forecasts for October to 9mbd from 9.12mbd. However, it expects November production to be up slightly to 9.11mbd.

To read the full story



MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.