Oil Price Weakness to Persist as Bullish Formations Snap

Oil Talking Points

Crude extends the decline from earlier this week as fresh updates from the U.S. Department of Energy (DoE) show a further buildup in oil inventories, and recent developments keep the downside targets on the radar as both price and the Relative Strength Index (RSI) snap the bullish formations from August.

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Oil Price Weakness to Persist as Bullish Formations Snap

Image of daily change for crude oil pricesImage of EIA US field production of crude oil

The ongoing pickup in energy inventories is likely to keep oil prices under pressure as the report also shows U.S. field production of crude climbing to 11,200 b/d in the week ending October 5, and the current environment may foster a larger correction in oil especially as the Organization of the Petroleum Exporting Countries (OPEC)see less demand in 2019.

OPEC’s Monthly Oil Market Report (MOMR) now calls for slower consumption in the year ahead, with the organization forecasting world oil demand growth at ‘1.36 mb/d, down by around 50 tb/d from last month’s projections, mainly reflecting adjustments in the economic projections for Turkey, Brazil and Argentina.’

Article source: https://www.dailyfx.com/forex/fundamental/us_dollar_index/daily_dollar/2018/10/11/Oil-Price-Weakness-to-Persist-as-Bullish-Formations-Snap.html