US Crude, Brent Crude & US Oil Inventory Trending Points
- Both US and Brent Crude had been splintered, as they had been residing at multi-months low
- A recent report of US inventory raise has simply muzzled the crude price in to the muds, as US crude had whiplashed in to a new 14-monthly lows
- The dreading deadlock regarding economic slowdown and tightened economy might weigh on the oil price as well
- There is yet no sign of shine over the crude oil shrine, as the OPEC and Non-OPEC nation’s agreed output cut would take at least 2019, April to take a grip over the market.
Brent Crude grievously hurt on economic slowdown, US crude drowned on record production & Inventory raise
Brent crude had plunged in to a solid 14-monthly low, earlier on Tuesday, the 18thof December. The US crude oil had broken its initial resistance level and is currently surfing at $48.80 a barrel, as the US shale sector again hit a record production.
The fear of global economic slowdown and lack of demand, has still been at large and playing a pivotal role in dragging down the Brent Crude in to a multi-month low.
While this report is being prepared, the US crude has been reigning at $48.84 a barrel and the Brent crude was jolted below $58.50. If the sorrow market sentiment persists, the US crude might test the 30s, as the market data suggests.
Brent Crude daily price chart (August, 2017- December, 2018)
The agreed output cut from OPEC and Non-OPEC nations like Russia would likely to imply very little impact on this recent turnover, as the agreed output cut of 0.80 million barrels per day would be implemented from next year and the extent of output cut seems to be insufficient to prevail the upcoming falls, as US oil inventories have been raising dramatically.
According to office data, the US is expected to pump a record of shale oil next month, which might just help the US crude to speed up a downwind momentum. Additionally, the Brent Crude had remained in a dreadful distress, amid daedal complexion of global economic slowdown and declined demand. US crude might find its key support at 47.45 region, while the Brent Crude’s key support could have been lying on to the 56.50-55.45 region, and an uphill battle may not breeze through anytime soon.
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[Disclaimer: The content of this article is personal opinion and should not be considered as investment advice or suggestion towards any trading activity.]