Oil remains subdued as markets hope for safety, WTI stuck near $63.40
- Crude prices continue to trade into the downside as energies remain hopeful that Iran sanctions will come to pass with little commotion.
- The global equity rout that hampered broader assets has left barrel costs flagging into seven-month bottoms.
Crude oil markets are flagging into the low end, with barrel prices remaining on the low end as energies traders continue to double-down on bearish pressures from US oil oversupply being able to eat up potential shortfalls from impending sanctions on Iran.
Energy agency figures in the US continue to show a steady build-up of supply stocks in the American oil markets, and oil traders are remaining confident that broader market production will be able to weather any potential supply constraints following the imposition of stiff US sanctions on Iran beginning on November 4th.
Oil markets were also dragged down recently after global indexes suffered a massive confidence crisis, sending the majority of major equities bourses reeling as investor confidence withered, and energies crumbled in lock-step as riskier assets suffered under the pressures of risk aversion. Broader indexes have begun recovering, but crude barrels remain subdued for the time being.
WTI levels to watch
US oil prices have stumbled below their 200-day moving average, currently sitting far above at 67.60, and WTI is trading into a scant seven-month low, with support coming from early 2018's swing lows from 58.00 to 61.75.