Crude Oil Analysis: Oil Waivers Raises Risk of Key Support Break

Crude Oil Analysis: Oil Waivers Raises Risk of Key Support Break

US West Texas Intermediate crude futures were up 7 cents, or 0.1%, at $63.76 a barrel. That's also the worst drop since July 2016.

This makes it attractive for traders to store oil for later sale, although Jefferies said "spreads are still insufficient to encourage physical storage".

Brent has declined from a 2018 high of $86.74 in early October amid growing concern over a possible slowdown in global growth as the U.S-China trade dispute heats up and hits emerging market economies in particular.

Because of the concerns about possible shortage of supply due to USA sanctions on Iran, the oil market is also beginning to be anxious about possible oversupply and inventories that are rising in many other parts of the world. This made the United States the biggest oil producer in the world.

New Delhi, Nov 2 Crude oil futures fell 0.31 per cent to Rs 4,644 per barrel, in line with a weak trend in Asian trade, as speculators cut down their bets.

As Washington hopes to curtail all Iranian oil exports, the market appears to have this priced in. Crude Oil price could turn range bound in week ahead as investors now patiently wait to observe impact of USA sanctions on Iranian crude oil and updates on Sino-U.S. trade related talks as positive outcome would be good for Crude oil since China is the biggest importer of Crude oil in the world.

Petoro AS, the company that manages the Norwegian government's massive stake in the country's oil and gas fields, warned that the industry's costs could be rising for the first time since crude's collapse in 2014.

The U.S. Energy Information Administration report on crude oil inventories is due to be released on Wednesday at 10:30a.m. EDT.

After hitting a multiyear high just one month ago, USA light crude has lost almost 20 percent and has shown a pattern that hasn't been seen in some time, according to energy expert John Kilduff.

Clayton Allen of Height Securities said Iran's biggest oil customers, all in Asia, were seeking waivers to USA sanctions against Iran's petroleum exports. Grisanti is watching for WTI to break above its 200-day moving average at $67.47 for a rebound. Latest data from the Russian Energy Ministry showed that the country increased production to 11.41mbpd to a fresh 30yr high. "I would categorize this as a seasonal build as the extended driving season is finally over heading into the North American Time zone change this weekend", John Thorpe, a commodity broker at Los Angeles-based Cannon Trading, told UPI. "It's not all downhill from here", she said.

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