Oil Prices are Set to Book a Loss for the Week
Energy futures are mixed this morning as prices search for direction going into the weekend. October RBOB is up slightly at 20 points per gallon while ULSD is down roughly the same amount. WTI and Brent benchmarks are both up between 10 and 20 cents per barrel to start the day.
Oil prices are set to book a loss for the week, driven by the IEA’s warning on excess oil supply and OPEC’s inaction on adjusting their output levels. While something as dramatic as a full collapse is unlikely, how the cartel proceeds in a market forecasted to be oversupplied with slowing demand growth will be closely watched going into 2020.
In what looks like a repeat of Hurricane Dorian, Tropical Depression Nine is currently forecasted to make landfall in Florida as a tropical storm sometime this weekend and then ride the coastline up to the Carolinas. While it is only anticipated to reach storm status, sustained rainfall and storm surges still pose a threat to the coastal cities.
Earlier this week crude oil futures looked to be on the verge of a technical breakout barring some bearish headlines rocking the boat. Over the course of the past couple weeks, the American benchmark managed to break through multiple resistance levels that left the path to $60 wide open starting with Monday’s trading. The slew of bearish headlines dropped those prices right back through the technical levels previously toppled and left the road ahead rather bumpy for buyers.