Oil prices were little changed in early trade on Thursday, sitting near multi-week lows hit overnight on worries about fuel demand due to a patchy U.S. economic recovery. Both benchmark contracts fell more than 2% on Wednesday, with WTI sliding to its lowest close in nearly four weeks and Brent at its lowest since Aug. 21, after a U.S. Federal Reserve survey showed the economic recovery was mixed. At the same time, data showed jobs growth was slower than expected in August, while factory orders in July were higher than expected. In further signs of a limited recovery, U.S. gasoline demand dropped in the week to Aug. 28 to 8.78 million barrels per day from 9.16 million bpd a week earlier, the Energy Information Administration said. U.S. refinery run rates fell to 76.5% of total capacity last week. While that was due to shutdowns ahead of Hurricane Laura, analysts said the upcoming refinery maintenance and the end of summer driving season would limit crude demand.
WTI Oil futures tumbled around 3% yesterday, settling around $42.50 per barrel their lowest in nearly a month, pressured by a sharp, but temporary drop in domestic crude supplies and production, as output in the Gulf of Mexico is likely to mark a strong recovery from Hurricane Laura. The EIA reported Wednesday that US crude inventories fell by 9.4 million barrels for the week ended August 28, marking a sixth weekly decline in a row. The US Crude output saw a record fall, dropping by 1.1 million barrels per day to 9.7 million bpd, its lowest since January 2018, as most US offshore facilities were shut as a precaution ahead of Laura. Gasoline stocks fell 4.3 million barrels in the week, the EIA said, compared with expectations for a 3 million-barrel drop. Refinery crude runs fell by 844,000 bpd and refinery utilization rates fell by 5.3 percentage points to 76.7% of total capacity, the EIA said.
TREND : BEARISH
Time : 03/09/2020
Pivot : 42.01
Technical View : LONG ABOVE 42.21
Target : 42.41, 42.49, 44.03, 44.82
Technical View : SHORT BELOW 41.81
Target : 41.61, 40.67, 39.99, 38.81