US crude oil stocks fell sharply last week, the Energy Information Administration (EIA) said on Wednesday. Crude inventories fell by 8 million barrels in the week to October 30th. US Crude production fell 600,000 barrels per day to 10.5 million bpd last week, the EIA said. Stocks at the Cushing, Oklahoma, delivery hub for US crude futures rose by 936,000 barrels, EIA said. US Refinery crude runs rose by 164,000 bpd and refinery utilization rates rose by 0.7 percentage point. Gasoline stocks rose by 1.5 million barrels while Distillate stockpiles, which include diesel and heating oil, fell by 1.6 million barrels.
U.S. oil prices dropped on Thursday as the dollar strengthened on growing expectations Democrat Joe Biden would win the U.S. presidential election but the Republicans would retain Senate control, holding back any huge COVID-19 relief package. A divided Congress would likely prevent Biden from enacting major priorities like fighting climate change or easing sanctions on oil producer Iran. Oil prices had surged on Wednesday on growing expectations that the Organization of the Petroleum Exporting Countries and its allies, together called OPEC+, would hold off on bringing back 2 million barrels per day of supply in January given demand has been sapped by new COVID-19 lockdowns. Analysts said U.S. inventory data was not all positive, with gasoline inventories having risen by 1.5 million barrels, against analysts’ expectations for a drawdown. At the same time, average highway use in France, Italy and Spain has dropped to its lowest level since late June which doesn’t bode well for gasoline demand.
TREND : WEAK BEARISH / SIDEWAYS
Time : 05/11/2020
Pivot : 38.33
Technical View : LONG ABOVE 38.53
Target : 38.73, 39.55, 40.36, 41.43
Technical View : SHORT BELOW 38.23
Target : 37.93, 37.27, 36.31, 35.39