Crude oil is falling intraday, as expectations of a US rate hike offset a tight supply outlook, and the recent dynamic rally initiated a partial profit-taking on the instrument.
Energy markets are also reacting to yesterday's data from the U.S. Energy Information Administration (EIA) showing that oil inventories fell by 2.14 million barrels. "The disappointing drop in inventories gave investors a boost to lock in gains after a 10% increase since the beginning of the month," - ANZ analysts noted in an analyst report.
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Open account Try demo Download mobile app Download mobile appBrent crude is losing close to 1% during today's session, with OIL's quotes, however, pointing to declines of around 2% after the latest futures contract rolled over.
However, it is not out of the question that these declines could be short-lived, as there are ongoing concerns in the broad market about tight global supply in the fourth quarter, with crude inventories at Cushing - WTI's supply hub - at their lowest level since July 2022 and production cuts continuing by OPEC and the Organization's affiliated economies.
With the futures rolled over, BRENT crude oil prices are heading toward support set by a consolidation zone near the $90 per barrel level.
Source xStation 5
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