Oil hits 6-months low on record US production
2023-12-07
Summary:
Oil prices rebounded in early Asian trading but stayed near June's lows due to elevated US crude output and gasoline inventories.
Oil prices recouped some of their losses in early Asian trading but remained at the lowest levels since June, after falling in the previous session on high US crude output and gasoline inventories.
Russian President Vladimir Putin and Saudi Crown Prince Mohammed bin Salman met to discuss further oil price cooperation on Wednesday in a bid to restore the market’s confidence.
US crude and condensate production increased to 13.24 million bpd in September, according to the EIA. The shale industry is benefited from repeated OPEC+ cuts that keep prices at a high level.
Crude inventories fell more than expected in the week ending 1 Dec, the EIA said. However, gasoline stocks rose by 5.4 million barrels in the week, well above expectations for a build of 1 million barrels.
Declines in China's exports likely slowed in November, a Reuters poll showed on Wednesday. The IMF upgraded it China growth forecast for this year and next last month, while Moody’s is far less optimistic.
Initial resistance lies around $70 for WTI crude. OPEC+ might be at its wit’s end, but with RSI around 30, we will likely see range-bound trading ahead of the NFP report.
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