Investing.com - Financial Markets Worldwide
🔮 Better than the Oracle? Our Fair Value found this +42% bagger 5 months before Buffett bought itRead More

Crude Oil Update: Libyan Unrest Supports Prices

BySaxo Bank
AuthorSaxo Bank
Published 10/10/2013, 07:18 AM
Updated 03/19/2019, 04:00 AM

Crude oil, especially Brent, was trading higher this morning following news overnight that Libya's prime minister had been taken by a former Libyan rebel group on the grounds of "national security and corruption". This heightens the tension in the country which has only just begun to see its oil production pick up following weeks of disruption, during which time its production has slumped by more than one million barrels per day.
Crude Oil Update
The premium over WTI crude has widened to USD 7.7/barrel, a previous level of resistance, not least due to the weekly inventory data from the US yesterday which showed the biggest rise in crude stocks in a year, mainly because of refineries reducing their operating rates to a five-month low.
WTI
As the charts below show both crude oil and motor gasoline inventories are now at or above their five-year range while production and imports continue to converge.
Crude Oil
This should help limit the upside to oil prices but with the latest news from Libya the risk premium in oil just won't go away, leaving prices at higher levels than fundamentals may suggest. WTI Crude continues to find support towards the 100.5 -101.00 area while near-term resistance is today's pivot at 102.18, followed by 103.18.

Latest comments

Loading next article…
Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.