November Crude Oil tested support (50.06) on Wednesday, October 12, 2016, trading down to 49.89 and recovering to settle at 50.18 as OPEC wavers in its commitment to production cuts. As the Istanbul meeting draws to its end, the OPEC secretary general Mohammed Barkindo says that OPEC hasn’t decided who would make cuts first – OPEC or NOPEC or if both groups would do it at the same time.
Is OPEC expecting US shale producers to join their quest for cuts? …And to cut first??? OPEC came out with their estimates for production totals for September and the report showed an increase of 220k from August to 33.39 million b/d of crude oil. This is just below the IEA estimates for September.
Hey Russia go ahead and cut production, we are right behind you. You too USA. We really need to stabilize prices. Come on other nations let’s do it. But you do it first. No.. wait... we’ll do it at the same time…. I mean… seriously, we have to stabilize price. We’re definitely cutting our production… you’ll see… Just go ahead and do it. The market needs it. It wants it… look go ahead… we’re going to do it… right behind you.
Iraq, Libya and Nigeria increased production in September and Venezuela and Iraq are disputing their production totals with OPEC. They say they are producing more than what OPEC says they are producing. Details...details… The API report came out and showed an increase in crude oil inventories of 2.7 million barrels. This the first build in 6 weeks, and it was more than the expected build of between 300,000 barrels and 2 million barrels.
Hurricane Matthew figured in some of the estimates. Cushing, Oklahoma saw a big decline of 1.352 million barrels; consensus was for a 100,000 barrel increase. Gasoline inventories rose by 688,000 barrels on expectations of a 900,000 barrel decline. Distillates dropped a whopping 4.517 million barrels. Hurricane related? Probably. Crude Oil declined on the report and ended the day at 50.01.
The EIA report comes out Thursday morning at 10 AM CT. Resistance is still at the June high (51.67) followed by trendline resistance at 51.97. A breakout above the trendline could send Crude Oil prices toward the $55 mark. Support is at 49.36, 49.02, 48.30 and 47.37.
- High 51.17
- Low 49.89
- Last 50.01
Daily Pivot Points for 10/13/16
- R2 51.64
- R1 50.82
- PIVOT 50.36
- S1 49.54
- S2 49.08