Prices Down Slightly As Supply Disruption Worries Ease

Oil prices fell around 0.8% after rising almost 6% on Friday as risk appetite improved driven by US efforts to ensure the conflict in Israel doesn’t spread. Secretary of State Blinken spoke to leaders in the region including Saudi Arabia and has returned to Israel. There has also been unofficial communication between the US and Iran. There also appears to be progress on elections in Venezuela. The USD index fell 0.4%.

• Brent fell 0.8% but held above $90. During the European session it reached a high of $91.39 above Friday’s close. The intraday low was $89.50. Support is at $87.40, 50-day EMA, and resistance is at $91.56, October 3 high.
• WTI was 0.7% lower and closed above $87. It made a high of $88.33 but then fell to $86.32. It is currently trading slightly lower at around $86.92. Support is at $81.50, October 6 low, and resistance is at $89.59.
• There are reports that talks are progressing between the Venezuelan government and the opposition on holding elections. A fair vote is a prerequisite for the US easing sanctions and allowing increased oil exports.
• Markets remain tight with the US doing more to enforce its price cap on Russian crude and Vortexa data showing that the oil held in stationary tankers for a minimum of 7 days last week fell 389kbd.