Oil Commentary [26/10/17]

It was a Sleepless in Seattle overnight session for crude as both Brent and WTI drifted aimlessly to finish the New York almost unchanged. Oil markets shrugged off the overnight official U.S. Crude Inventory data which showed a surprising 0.9 million barrel build as gasoline and distillates offset this with much more substantial than forecast falls of 5.5 million and 5.2 million barrels respectively.

Depending on your point of view, oil is now consolidating its gains of the last two weeks in preparation for a push to new highs, or both contracts are looking tired at these levels in the face of producer hedging in the futures and a lack of fresh momentum. Oils fate will be decided most likely by the 7th November OPEC Non-OPEC meeting in Vienna. With Russia and Saudi Arabia making regular soothing noises about the production cut, the street will need to see an extension to cover the remainder of 2018 to breathe fresh life into the oil rally.

Brent spot trades unchanged at 58.45 with the OPEC nirvana of 60 dollars so near yet so far. It has run out of steam multiple times now between 58.50 and 58.80 and it yet to retest it's September high at 59.15. Rising trend lines at 57.25 and 55.65 form the key supports.

WTI is also unchanged at 51.85 with resistance in the 52.30/52.50 region proving formidable. Support appears initially at 51.00 followed by 50.00.