Oil finds no direction on mixed signals
2023-10-25
Summary:
Oil prices stabilize after three consecutive falls, with discouraging European economic data casting uncertainty on fuel demand.
Oil prices digest their loss on Wednesday after falling for three sessions in a row. A flurry of disappointing economic data from Europe cloud the outlook for fuel demand.
In contrast, S&P Global said its flash US composite PMI rose to 51.0 in October from a final September reading of 50.2. It was the highest level since July.
China is considering implementing fresh fiscal stimulus measures in order to support its economic recovery with $137 billion in extra sovereign debt issuance for infrastructure development.
The API reportedly shows a draw of around 2.7 million barrels of oil in US crude supplies for the week ending 20 Oct. Analysts expected an increase of about 20,000 barrels.
Countries including the US, Canada, Russia and Arab states pushed for a pause or ceasefire in fighting between Israel and Hamas in the Gaza Strip to ensure humanitarian aid could be delivered.
Israel has yet to agree a detailed plan for post-war Gaza, raising fears that a ground operation against Hamas could begin without adequate preparation for its aftermath.
Brent crude has been on the back foot after hitting the 92 level. After breaking below its 50 EMA, price could head towards the monthly low around 83.
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