The US Energy Information Administration (EIA) reported crude oil inventory build of 500,000 barrels for the week to October 2. US Crude oil production also rose to 11 million barrels per day from 10.7 million bpd in the previous week. In gasoline, the EIA reported an inventory decline of 1.4 million barrels for the week to October 2, which compared with a decline of 700,000 barrels for the previous week. Gasoline production averaged 9.5 million bpd last week, compared with 8.9 million bpd a week earlier. In distillate fuels, the EIA estimated a draw in stocks totaling 1 million barrels, compared with a decline of 3.2 million barrels reported for the previous week.
Oil prices rose on Thursday as oil workers evacuated rigs in the U.S. Gulf of Mexico ahead of Hurricane Delta, though fuel demand concerns persisted on fading chances for an economic stimulus deal in the United States, the world’s biggest oil consumer. With Hurricane Delta forecast to intensify into a Category 3 storm with winds of up to 120 miles per hour (193 km per hour), oil producers have evacuated 183 offshore facilities and halted nearly 1.5 million barrels per day (bpd) of oil output. Hopes for a further pick-up in U.S. fuel demand faded as White House officials reiterated on Wednesday that “stimulus negotiations are off” a day after President Donald Trump halted talks on a broad relief package. The Energy Information Administration data on Wednesday did show U.S. gasoline stocks fell more than expected last week to their lowest since November, and distillate stockpiles also declined. However, crude oil supplies rose by 501,000 barrels, as production and imports climbed.
TREND : WEAK BULLISH
Time : 08/10/2020
Pivot : 39.85
Technical View : LONG ABOVE 40.05
Target : 40.34, 40.91, 41.71, 42.51
Technical View : SHORT BELOW 39.65
Target : 39.45, 39.21, 38.74, 38.25