Oil market updates on October 23

Crude oil inventories – 17:30 MT (14:30 GMT)

According to yesterday’s news OPEC is considering further production cuts. The next meeting of oil-producing countries is scheduled for December 5-6. The announcement pushed the oil prices up. The move to the downside came after the release of private oil data. According to it, the number of barrels advanced by 4.45 million (vs. the 2.75 million expected).  Today, we will be awaiting the publication of crude oil inventories by the EIA at 17:30 MT. According to forecasts, the number of barrels is expected to increase by 2.5 million. In case of lower figures, the oil prices will go up.

• WTI has tested the $54.60 resistance level but slid down towards the support at $54. If the number of barrels is lower than the forecasts, this level will be broken. The next support will be placed at $53.4 (100-period SMA). After that, the further support level will lie at $52.8. In case of a higher-than-expected number of barrels, the pair will break the $54.6 level. The next resistance will lie at $54.93.

• The price of Brent followed a similar scenario. It has tested the $60.25 resistance level but fallen to the support at $59.33 (50-period SMA). At the moment, the further key levels from the downside lie at $58.9 (100-period SMA) and $58.57. From the upside, the first resistance is placed at $59.65. After that, you need to pay attention to the $59.97 level. If they are broken, the retest of the $60.25 level will be possible.

Notice, that you need to choose BRN- and WTI- futures to trade oil in Metatrader 4. 

Author: FBS Analyst Team

More by this author

Similar

08.03.2022 21:17 Russian Oil Got Banned from Market

This week started with the talk of the United States banning Russian oil exports, so XBR/USD saw $130 a barrel. Then the ban became reality. What does it really mean for the market?

24.12.2021 14:00 The First Oil Decision of 2022

Organization of the Petroleum Exporting Countries (OPEC) is scheduled to meet on January 4.

Latest news

29.09.2023 11:09 The US Dollar Is Correcting

Inflation in Europe was released better than the forecast. The preliminary fact was published at 4.3%. What's happening in the markets?

28.09.2023 08:45 Bearish Signal For The USD

XAUUSD fell below 1900 for the first time since March 2023. Meanwhile, the US dollar index gives a bearish signal. Read the full report to learn more!

27.09.2023 11:11 Current Risks for Developed Economies

Oil prices are rising while the US government is on the verge of shutting down. How will it affect the market?