Home Gold News US Crude Inventories See Record Increase, Output Surges Too

US Crude Inventories See Record Increase, Output Surges Too

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US crude oil stockpiles jumped as production surged, posting its largest one-week increase ever, the Energy Information Administration (EIA) said on Wednesday. The US Crude inventories soared by 4.3 million barrels in the week to October 23rd to 492.4 million barrels, US Crude oil output also surged to its highest since July at 11.1 million barrels per day in a record weekly increase of 1.2 million bpd. Fuel demand remains lackluster. Overall gasoline supplied, a measure of demand, is down 10% from the year-over-year period, the EIA said.

Oil prices rose in early trading on Thursday

Oil prices rose in early trading on Thursday, regaining some of the ground lost in a 5% slump overnight, amid the prospect of tighter short-term supply with two-thirds of U.S. output shut in the Gulf of Mexico as Hurricane Zeta slammed Louisiana. Signs of a growing global supply glut and a second wave in the coronavirus pandemic sent prices tumbling in the previous session, but market watchers said technical support levels were a factor in trading on Thursday. Hurricane Zeta’s impact is expected to be short-lived and the return of U.S. production will add to oil oversupply, as Libya rapidly ramps up output after an eight-month blockade and soaring COVID-19 cases in the United States and Europe lead to new restrictions keeping people off the roads. Data from the U.S. Energy Information Administration on Wednesday provided evidence of the growing glut: U.S. crude stockpiles rose by 4.3 million barrels in the week to Oct. 23, a much bigger increase than expected.

Time                                      :           28/10/2020

Pivot                                     :      37.75    

Technical View                     :           LONG ABOVE 37.95

Target                                   :           38.15, 38.63, 39.63, 40.41

Technical View                      :           SHORT BELOW 37.55

Target                                   :           37.35, 36.54, 35.87, 34.81

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