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  • Recovering oil production in Saudi Arabia continue to weigh on crude oil prices.
  • Crude oil stocks in the United States rose more than expected last week.
  • The positive impact of trade optimism on crude oil prices stays limited.

Crude oil prices staged a late recovery and closed the day virtually unchanged on Wednesday but struggled to gain traction on Thursday as markets continue to price the faster-than-expected recovery in Saudi Arabia’s crude oil production following the missile and drone attacks, which caused a sharp spike in prices earlier this month.

Inventory report weighs  on crude oil

Additionally, the weekly crude oil market report published by the Energy Information Administration (EIA) revealed that crude oil stocks in the United States (US) increased 2.4 million barrels for the week ending September 23rd to make it even more difficult for prices to push higher.  

The barrel of West Texas Intermediate (WTI) stretched lower on Thursday and touched its lowest level since September 16th at $55.40. As of writing, the WTI is trading at $55.65, erasing 1.8% on a daily basis.

On the other hand,  Chinese Commerce Ministry Spokesman Gao told reporters that they were preparing for making progress in trade negotiations with the US next month in Washington. Nevertheless, the positive impact of this development on crude oil was relatively limited.

Technical levels to watch for