Traders will get another piece of the current inventories puzzle at 14:30 GMT when the U.S. Energy Information Administration (EIA) releases its weekly inventories data. Traders are looking for a crude oil draw of about 300,000 barrels.
An unexpected build will be bearish for crude oil prices, while a deeper than expected draw could fuel an intraday short-covering rally.
A rise in crude oil inventories will reinforce fears of a global recession that would cut demand. This is potentially bearish. However, losses will likely be limited due to upcoming supply restraints.
In November, the recently announced OPEC+ production cuts will begin, while in December, the fresh European Union (EU) embargo on Russian energy products will be strictly enforced.
Our work suggests that the longer the markets remain in a trading range, the greater the chances of an upside breakout in November and December, once the impact of the OPEC+ production cuts and the EU oil embargo is felt.
An unexpected build will be bearish for crude oil prices, while a deeper than expected draw could fuel an intraday short-covering rally.
A rise in crude oil inventories will reinforce fears of a global recession that would cut demand. This is potentially bearish. However, losses will likely be limited due to upcoming supply restraints.
In November, the recently announced OPEC+ production cuts will begin, while in December, the fresh European Union (EU) embargo on Russian energy products will be strictly enforced.
Our work suggests that the longer the markets remain in a trading range, the greater the chances of an upside breakout in November and December, once the impact of the OPEC+ production cuts and the EU oil embargo is felt.