Fall in Oil prices, rest from the sustained rally
On Tuesday, oil prices fell slightly, taking a break from a long surge fueled by robust demand in the United States, the world’s largest consumer of oil and its products.
• Brent crude was down 20 cents or 0.2 percent at $85.79 a barrel by 0143 GMT, after rising 0.5 percent the previous session.
• The U.S. oil was down 21 cents or 0.3 percent at $83.55 a barrel, after finishing unchanged the previous day after touching new highs.
• Despite the fact that China’s scorching power and coal markets have cooled slightly as a result of government intervention, global energy prices remain high.
Predictions for future
According to OANDA senior market analyst Edward Moya, “forecasts for a colder November have energy dealers prepared for a very tight market that will be met (with) unprecedented demand this winter.” “This oil market will remain tight,” he continued, “which should mean a headline or two away from $90 oil.”
Brent is expected to exceed Goldman Sachs’ year-end projection of $90 per barrel, according to the investment bank. Switching from gas to oil could add 1 million barrels per day (bpd) to oil demand, according to the bank.
Status of Gasoline distillate
After more than a year of low demand, gasoline and distillate consumption in the United States has returned to five-year averages.
This week, the market will be paying particular attention to inventory levels in the United States. According to a Reuters poll of analysts, crude oil stocks are expected to have increased by 1.7 million barrels last week. However, inventories of gasoline and distillate were predicted to shrink