Crude oil Inventories showed increment.
Weekly U.S. Baker Hughes Oil Rig Count showed a slight increment
U.S. Baker Hughes Total Rig Count also showed a slight increment.
Forward curve is declining, indicating the forward month futures are trading below the current month trade. This Backwardation is seen positive to the price.
Chinese buyers have booked only 14 million barrels for November delivery, a Singapore-based trader estimated, down from 22 million barrels in June, the highest in 2-1/2 years.
“The size of the domestic crude stock is enough to service a thirsty refinery sector, more than enough to service a stalled economy and large enough to weather any more additions to this (oil price) rally without having to resort to panic spot buying,” said John Evans from oil broker PVM.
“The buying frenzy that we saw earlier this year has cooled down,” he said.
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Global oil prices climbed as the energy market braces for supply disruptions caused by catastrophic flooding in Libya.
“Libya has a number of ports that are not able to export,” said Matt Smith, lead oil analyst for the Americas at Kpler. “It’s one more thing adding to the bullish side of the ledger for crude.”
“This is going to reignite inflationary concerns,” said Smith. “It’s difficult to understand how this will end when you have such a major force – Saudi Arabia – intervening in the market to prop up prices.”
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