EBC Markets Briefing | Crude prices lower on unexpected rise in US inventory

Oil prices slid on Thursday though Asia's imports of crude oil rose in September to the highest level since the start of the Iran war.

Pezeshkian said on Wednesday that Tehran ​would never surrender to the US but still believes in diplomacy. On Tuesday, Trump used a speech at the same forum to make ​his threat.

According to the EIA, US crude oil stockpiles unexpectedly grew by 3 million barrels for the week ending 18 September, defying Reuters poll predictions of a small draw, while overall fuel inventories decreased.

Saudi Arabia has brought its East-West oil pipeline back online, positioning the country to restart crude exports from the Red Sea terminal in Yanbu, according to industry sources.

Trader said earlier the country faces an imminent export freeze if its primary Red Sea pipeline remains offline for more than a few days, risking a sudden disruption of up to 4% of global oil supplies.

Global oil supplies will plunge by 5.7 million bpd (about 6%) this year, according to the IEA, following August shipping bottlenecks in the Strait of Hormuz and the Red Sea.

EBC Financial Group analyst says WTI crude showed a classic double bottom trend reversal pattern - a sign of bear fatigue. A hold above $90 would likely expose $93.6.

Asset Recap

As of market close on 23 September, among EBC major products, Veeva Systems shares led gains on earnings beat. Wall St banks raised the price targets, highlighting AI as a major upside driver.

McDonald plans to raise operating margins, launch a new multiyear employee training programme, and spend billions of dollars supporting franchisees' equipment and tech upgrades.

Gold prices declined as the dollar strengthened and investors assessed the outlook for inflation and Fed interest rates. There are signs that Chinese investors are increasing gold purchases.

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