US Oil Price Stable as Crude Stocks Improve

Oil prices in the U.S. have become significantly stable, after the earlier concerns with the crude stocks supply.

This improvement came as a result of the increase in the U.S. stockpile which rose drastically, and the weakening of the dollar, giving a stable record on Wednesday.

Reuters reports that Brent crude futures for December were down 4 cents, or 0.04%, to $93.48 a barrel by 0849 GMT. U.S. West Texas Intermediate (WTI) crude futures for December were up 25 cents, or 0.3%, to $85.57 a barrel.

However, with 4.5 million barrels crude rise, closing October 21, the projection has been twisted in the favor of the U.S. market.

Meanwhile, fears of global recession continue to be reinforced by the rising stockpiles, which will reduce demand, as experienced with the Chinese crude import.

Speaking on the head warning of the global energy crisis, Stephen Innes, managing partner at SPI Asset Management said: “OPEC production cuts effective November and the new EU sanctions on Russian oil to be enforced from December should be positive (for prices)”.

Innes added that ahead of the U.S. mid-term elections on November 8, WTI buyers will keep watch for further interventions by President Joe Biden.

Biden, who has announced his plan to sell off the rest of a record release from the nation’s emergency oil reserve by year-end, has warned the perpetrators of the crude supply reduction, Saudi Arabia and Russia, and says they will face the repercussions.

Source: Reuters

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