Oil in October fell by 10%, sales continue to
Oil prices accelerated the fall on Wednesday. Brent is still not able to hold above 75 and today in the morning trade has updated the lows of August 22 at around 74,39. The widespread decline of the dollar does not soften the pressure on the quotes. For the month, Brent fell by almost 10%.
The catalyst for yesterday’s sales, based on data from US Department of energy. Crude oil inventories last week increased by 3.2 million barrels. This is almost twice less than it previously published evaluation of the API. Stocks of gasoline and distillates declined by 3 and 4 million barrels. But production jumped by 300 thousand barrels per day to 11.2 million barrels that greased a relatively good picture of the stocks.
The oil poured into the fire, the effect of the strong dollar, which had strengthened across the entire spectrum of the market. However, today’s pullback, the USD has not helped Brent to refrain from falling to new lows almost 3 months old.
The barrel remains vulnerable and now, when the 75 level turned from support to resistance, the technical picture has significantly worsened. To improve it you need Brent back above $ 75, and ideally again to break through the region 77. But the probability of the second scenario is small.
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