October 27, 2021

Investors Calm Despite Declining Oil Prices

 An unexpected increase in U.S. crude oil supplies was a barrier for black commodity trading to rise higher.

Most recently, the American Petroleum Institute (API) reported an increase in crude oil inventories of 2.3 million barrels last week, more than expected for an increase of 1.9 million barrels.

Meanwhile, petrol stocks increased by 500,000 barrels and distilleries increased by 1 million barrels, compared to the expected decline for both.

In the Asian session, the benchmark Brent crude oil futures were down 0.5% at $ 85.22 a barrel, while US WTI was down about 0.6% at $ 84.10 a barrel.

With Brent crude up eight weeks in a row, and WTI trading up 10 weeks in a row, analysts feel the price is starting to look ‘overbought’.

Overall, crude oil prices remained around annual highs supported by a recovery in demand following the reopening of major economies, as well as being pressured by shortages in global supply that led to a surge in energy prices.