Oil prices on Thursday morning are up slightly with Brent on November contracts at $48.1 and WTI with November delivery at $44.8 per barrel. At yesterday’s close, Brent on November contracts was going for $47.77 and WTI - $44.58 per barrel.
Despite the positive EIA data, on Wednesday the cost of oil fell. US oil reserves at the end of last week stood at 1.925 million barrels and the distilleries held 2.088 million. Nevertheless, oil reserves in the States are still above the 5-year average. This is the reason for the declining price of oil. Putting together the low level of demand and reserve volume, investors understand that, despite any fall in the latest numbers for the reserves, there’s no real fundamental reason for a rise in the price. As a result, the reaction to the positive stats was weak.
Today the market is trying to win back yesterday’s fall. We are expecting a slight growth of oil prices.