Brake Oil, Pause Before Falling?
Oil prices moved flat after two days of declines. Brent held above $63 and WTI below $60. The market weighed two key news items: Saudi Aramco cut its official selling price to Asia (as expected), while the EIA reported a sharp rise in US crude oil inventories in the week ending October 31st. This combination has market participants cautiously assessing the next direction.
Fundamentally, concerns about oversupply remain dominant. Rising production from OPEC+ and non-member countries is pressuring prices, despite supply risks from US sanctions on two major Russian producers and attacks on energy infrastructure. Several major players expect the supply surplus to widen next year, while the Saudi price cut is being interpreted as a market share grab, not a signal of supply tightening.
However, not all signals are bearish. US gasoline inventories fell to a near three-year low, countering downward pressure and indicating still-resilient downstream demand. In the short term, prices are likely to remain range-bound: the market is weighing the impact of the Saudi discount, the direction of the US dollar, and subsequent demand data to determine whether this stabilization is the beginning of a rebound or just a pause before further decline. (az)
Source: Newsmaker.id
