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Instrument: OIL
Bullish Preference:
A Buy position is envisaged if the price trades above 90.88 with take profit at 91.37
Bearish Preference:
A Sell position is envisaged if the price trades below 90.20 with take profit at 89.62
Fundamentals:
No Major Fundamental
Comment:
U.S. oil refiners have cranked up output of diesel, heating oil and jet fuel for winter but are struggling to turn a profit because gasoline margins have fallen over 80% since the summer driving season ended.
Refiners, which typically produce more distillates such as diesel and heating oil in autumn, are trying to rebuild inventories of these fuels that are near seasonal record lows.
While fuel makers focus on maximizing distillate output, they inevitably produce gasoline as well. That has left gasoline stockpiles bloated at a time of slow demand. Meanwhile, Russia’s short-lived diesel export ban, along with less refinery capacity and Western sanctions on Russian diesel, have hit diesel inventories and tightened supplies.
Also, the Biden administration on Wednesday broadly eased sanctions on Venezuela’s oil sector in response to a deal reached between the government and opposition parties for the 2024 election – the most extensive rollback of Trump-era restrictions on Caracas.
A new general license issued by the U.S. Treasury Department authorized OPEC member Venezuela, which had been under crushing sanctions since 2019, to produce and export oil to its chosen markets for the next six months without limitation.
Analysis: SCRUM Team
