OANDA - Oil futures commentary

News   •   Nov 03, 2016 17:46 +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.

Oil received no respite overnight from the US EIA Crude Inventories Report. Stocks rose by a mighty 9.3 million barrels vs an expected drawdown of 1 million barrels, the largest on record.

Brent and WTI both tanked by 3% in response. WTI broke $45.00 a barrel and Brent $45.50 before managing an anaemic recovery.

Support lies at $45 for Brent and $43.70 for WTI. The price action suggest we will get there sooner, rather than later, as the global oil slick grows amidst inaction from OPEC.