- Oil prices are stepping lower once again as US supplies continue to rise.
- Global stock routs are seeing oil on the decline as traders pull away from risk markets.
Crude oil prices are returning to the week’s lows with WTI testing 66.20 as broad-market concerns see demand for oil on the downside.
An equities rout in the US late Wednesday is seeing crude oil take a step lower as energies traders reduce their oil exposure over concerns that a continued equities slide will see oil demand head further south.
Elsewhere, the US’ supply of crude oil has risen for a fifth consecutive week as US oil facilities continue to churn out more oil than Americans can feasibly use, and the energies sector has eased off of Middle East/Asia crude supply concerns on impending Iran sanctions from the US… at least for now. American sanctions on Iran are due to come into effect November 4th, and broader crude markets have been steadily drawing down their purchases of Iranian oil, further squeezing the East’s access to crude oil.
WTI levels to watch
US crude barrels have been steadily declining for nearly four weeks, peaking at 77.00 in early October and tumbling steadily into 66.20, and WTI barrel prices are trading below the 200-day moving average, currently sitting near 67.50, for the first time since September of 2017.
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