Daily Times

Global crude prices went up on Wednesday after falling for four consecutive sessions. At 1245 hours GMT, Brent, the international benchmark for two-thirds of the world’s oil, gained $0.75 (+1.09 percent) to reach $69.76 a barrel. Similarly, the US West Texas Intermediate (WTI) reached $67.16, up by $0.57 (+0.86 percent).

The price for Opec Basket was recorded at $69.65 a barrel with 1.76 percent decrease, Arab Light was available at $70.73 a barrel with 0.08 percent increase, while the price of Russian Sokol slipped to $69.25 after shedding 0.52 percent.

The strategists at Credit Suisse said in a report that Brent crude oil is threatening a top, with an RSI momentum top and divergence already in place. The top will be confirmed on a break below the $67.44 July low.

“Brent Crude Oil remains under pressure with weekly RSI momentum holding a clear top and bearish divergence to warn of a potential price top also. Below the $67.44 July low would warn of a more serious break lower, for a move to $64.57 next, with scope for the 200-day average at $63.18, with buyers then expected here,” the report said, adding: “Above $72.70 is needed to ease the pressure off the $67.44 July low for a recovery back to the top of the range at $75.78/77.84.”

According to other experts, in the short-term, the oil market may be volatile with frequent pull-backs as crude prices are beginning to struggle as demand in Europe faces headwinds.

The US shale oil production is expected to rise to 8.1 million barrels per day (bpd) in September, the highest since April 2020, according to the Energy Information Administration’s monthly drilling output report. The US crude oil and gasoline inventories fell last week, while distillate stocks rose.