OANDA - Oil futures commentary

News   •   Oct 20, 2016 10:48 +08

Please attribute the following commentary to Jeffrey Halley, senior market analyst at OANDA. For direct comment, call Jeffrey at +65 9457 1849 or email jhalley@oanda.com

WTI and Brent Crude both marched higher overnight with both finishing the New York session some 2% higher. The US EIA Crude Inventories led the parade showing a surprise drawdown of 5.2 million barrels against and expected 2.7 million drawdown, confirming the API numbers from the evening before.

WTI in particular was given a lift trading well north of $52 a barrel in the December contract which becomes the front month this week.

The Presidential debate will have little impact on prices this morning. With the inventory numbers out of the way, oil will revert back to headline trading with this $50/$55 area a seemingly Goldilocks zone for producers and consumers alike for now.