Futures on US West Texas Intermediate Crude Oil were mostly steady on Thursday. That followed a sharp drop in the previous session due to concerns rising inflation in the United States, driven by a surge in energy costs, may urge the government to release more strategic crude stocks to push prices down.
US consumer prices rose at an annual rate of 6.2% last month, which has been the sharpest rate of increase in 30 years. The data bolstered the US Dollar as it added to expectations that the Federal Reserve may take action on monetary policy and the White House may take steps towards curbing higher prices. Some of those efforts may include the release of more crude oil from the nation’s Strategic Petroleum Reserve (SPR).
The official report by the US Energy Information Administration (EIA) showed yesterday that crude oil inventories had increased by 1 million barrels during the week ended November 5th. Analysts on average had anticipated a larger increase – by 2.1 million barrels.
As many as 3.1 million barrels were released from the US Strategic Petroleum Reserve, or the most since July 2017, the data showed.
On the other hand, US gasoline and distillate inventories dropped further last week.
“Crude prices are trying to find their footing after yesterday’s slide as runaway inflation in America is adding pressure on the Biden administration to tap the Strategic Petroleum Reserve (SPR),” Edward Moya, senior analyst at OANDA, was quoted as saying by Reuters.
“Energy traders know that an SPR release will only deliver a very short-term drop in prices that won’t provide much relief for the American consumer.”
As of 9:20 GMT on Thursday WTI Crude Oil Futures were inching down 0.06% to trade at $81.29 per barrel. During the previous trading session the black liquid slipped as low as $80.81 per barrel, which has been its weakest price level since November 5th ($78.96 per barrel). WTI Crude Oil Futures have retreated 2.30% so far in November, following an 11.38% surge in October.
At the same time, Brent Oil Futures were gaining 0.73% on the day to trade at $83.16 per barrel. During the previous trading session the commodity slipped as low as $82.10 per barrel, which has been its weakest price level since November 5th ($80.28 per barrel). Brent Oil Futures have retreated 0.50% so far in November, following a 6.75% gain in October.
Daily Pivot Levels (traditional method of calculation) – WTI Crude Oil Futures
Central Pivot – $82.37
R1 – $83.94
R2 – $86.53
R3 – $88.10
R4 – $89.66
S1 – $79.78
S2 – $78.21
S3 – $75.62
S4 – $73.02
Daily Pivot Levels (traditional method of calculation) – Brent Oil Futures
Central Pivot – $83.37
R1 – $84.65
R2 – $86.75
R3 – $88.03
R4 – $89.30
S1 – $81.27
S2 – $79.99
S3 – $77.89
S4 – $75.78