In the week since our last edition of What’s Affecting Oil Prices, Brent and WTI have backed off recent highs. Brent fell $2.42/bbl last week to average $82.54/bbl. Also as we expected, $85/bbl remained the ceiling. WTI fell $2.18/bbl to average $72.95/bbl. While Brent finally fell below $80/bbl for the first time since the rally began, WTI has not yet touched pre-rally levels despite two weeks of large crude inventory builds. With another build likely to be reported on Oct. 17, WTI prices could fall more quickly in the back half of the week. Markets will likely remain resistant to bearish news, thus maintaining price support in the $80-$83/bbl band, but the most recent markets news means prices are likely to average closer to $80/bbl this week.

Russia and Saudi Arabia’s one-sided consent to expand generation is by and large vigorously pitched by the two governments and in addition the U.S. ahead of time of Nov. 4. A third seven day stretch of vast U.S. unrefined forms would additionally weigh on costs. Furthermore, the IEA’s most recent report trimmed interest projections. After reports that the U.S. government was possibly thinking about issuing Significant Reduction Exemptions, there have been no further declarations. For the time being, worries around the vanishing of a Saudi Arabian national seem, by all accounts, to be constrained to the political circle, despite the fact that the U.S. reaction to the disappearance bears watching on the off-chance that punitive measures are taken.

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