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Crude Oil Stable on November 23 amid Supporting Inventory Reports

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Crude oil stable on November 23

After starting the day on a positive note, crude oil prices were stable on November 23, 2016. At 12:50 PM EST on the day, WTI (West Texas Intermediate) crude oil futures contracts for January 2017 delivery were trading at $48.17 per barrel, a rise of ~0.27%.

Brent crude futures contracts for January 2017 delivery rose ~0.22% to $49.22 per barrel on the day.

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EIA reported a fall in crude oil inventories

The Energy Information Administration (or EIA) reported a fall in crude oil inventory levels for the week ended November 18, 2016. According to the data released by the EIA at 10:30 AM EST on November 23, crude oil inventory levels fell 1.3 million barrels in the last week.

On November 22, the American Petroleum Institute (or API) reported that crude oil inventories had fallen 1.3 million barrels in the week ended November 18, 2016. The market was expecting a rise of 0.67 million barrels in inventories. The falls reported by both the EIA and the API weighed on crude oil prices.

Fresh doubts over the output cut deal

Fresh doubts over the successful execution of supply cuts announced by OPEC (Organization of the Petroleum Exporting Countries) dented the sentiment in the market. In its previous official meeting in Algeria, OPEC announced a supply cut for its members to 32.5 million–33 million bpd (barrels per day).

The market is looking forward to the producers’ meeting on November 30 in Vienna, Austria, at which time individual supply quotas will be declared. The market is also looking forward to the oil rig count report by Baker Hughes, which is scheduled to release on November 25, 2016.

At 1:00 PM EST on November 23, Carrizo Oil & Gas (CRZO) and Canadian Natural Resources (CNQ) rose ~0.84% and ~0.86%, respectively, whereas Total (TOT) and British Petroleum (BP) fell ~1.1% and ~0.20%, respectively. The ETF SPDR S&P Oil & Gas Exploration & Production ETF (XOP) and the Power Shares DB Oil ETF (DBO) rose ~0.93% and ~0.69%, respectively.

The following article explains the performance of copper on November 23.

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