After ending yesterday at $79.35, today Brent crude oil dropped to its lowest point in 11 months — $76.94. It later recovered 58 cents and currently trades at $77.52.
United States Crude Oil Inventories didn't cause a noticeable effect even though it falls short expectations with -5.19 million.
United States Crude Oil Inventories released earlier showed a marked improvement to -5.19 million from the preceding data of -12.58 million, but fell short of the -3.31 million figure forecast by a consensus of market analysts.
Amid the market gloom, United States Cushing Crude Oil Inventories released today at 15:30 UTC with a figure of -373,000, while the previous figure was -415,000. United States Unit Labor Costs (QoQ) (Q3) came out at 2.4, while a consensus of analysts was expecting 3.1.
The Commodity Channel Index (CCI) indicator is below -100, meaning the market price is unusually low and below its rolling moving average. Technical analysis indicates that a new, strong downtrend could be forthcoming with short positions favored. A crossing of the lower Bollinger Band® at $77.91 suggests further losses may follow for ICE Brent crude. On the other hand, note that ICE Brent crude could begin to recover as it approaches significant support, now 21 cents away from $77.73. Dipping below could be an indication that further losses are ahead.
Looking forward, ICE Brent crude is poised to extend its strong downtrend and continue declining.
Taking a look at other Energy commodities, negative performances are evident as Heating Oil drops 4.33% to trade around $2.79. Crude Oil is down $1.85 from the beginning of the session and now trades around $72.4.
Though Brent crude has been dropping, other Energy have been performing better: Natural Gas gained 5.3% and is now trading at $5.76.
Looking ahead, ongoing depreciation may be prolonged as United States Initial Jobless Claims projected to come out at 230,000 — worse than previous data of 225,000; data will be released tomorrow at 13:30 UTC.
The commodity has been trending lower for about a month. ICE Brent crude has shed 33.45% over the past six months.