On Thursday morning oil was correcting after a fall on Wednesday. Yesterday’s close saw Brent on December contracts stand at $45.80, with WTI (December delivery) at $42.96. Today Brent on December contracts is going for around $45.92, with December’s WTI at $43.10 per barrel.
The fall has come about due to negative American Oil Institute data which showed a rise in US reserves of 6.3 million barrels last week. We reckon that the weak growth today will switch into a fall. The US’ EIA will give its version of the report tonight and it’s likely that the data will confirm what was published yesterday.
Brent is looking to head to $42 per barrel and test a local minimum. We recommend investors be prepared for this.