The oil price looks optimistic. What are the reasons?
Crude sags on ascending American shale output
On Tuesday, crude markets went down, suppressed by soaring American shale output as well as fears that another hurricane affecting the Caribbean could knock out refineries, disrupting shipping to and from the USA.
Nevertheless, dipping shipments from leading exporter Saudi Arabia prevented oil prices from going down further, as some financial experts state.
US West Texas Intermediate crude futures CLc1 reached $49.83 a barrel, sliding8 cents from their previous settlement.
In October, American shale output is set to ascend for a tenth month in a row, as the US government informed on Monday.
Apparently, output across seven shale plays is believed to rally by almost 79,000 barrels a day, hitting 6.1 million bpd, as follows from the US Energy Information Administration's monthly drilling output report.
Outside America, Brent crude futures LCOc1 tumbled 15 demonstrating an outcome of $55.33 a barrel.
The market optimism waned amid stricter restrictions to control rising coronavirus infections. S&P 500 and Nasdaq dropped from the all-time highs, while the USD jumped higher.
S&P 500 skyrocketed to the all-time high on optimism that Biden’s fiscal stimulus will support economic growth and boost corporate earnings.
PMI reports from the EU, the UK, and the USA will be released during the day!