Oil prices rallies during most of last week and may also continue their upward trend in the upcoming week depending on the development in Europe and U.S. The recent news from the Middle East in particular the explosion of a missile base in Iran might raise the concerns in the Middle East and might also consequently adversely affect the oil market. But for the time being the region remains stable. During the upcoming week there are many items on the agenda that could affect crude oil prices including Euro Area GDP for third quarter, U.S. PPI, American retail sales report and Philly Fed survey.
On Friday, November 7th oil price (WTI) rose by 1.24% to $98.99/b – the highest price level since July 26th; Brent also inclined by 0.91% to $113.76/b; during November WTI increased by 6.22% and Brent by 3.87%.
Oil Stockpiles – Sharply Fell Last Week
U.S. oil stockpiles changed direction and sharply declined by 15.3 million barrels to 1,745.3 million barrels. The current oil stocks are 96,705 million barrels below oil stocks levels recorded in the same week last year.
If the oil stocks will decline again it may further pressure the WTI to rise again.
The new report will be published on Wednesday.
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Lior Cohen, M.A. commodities analyst and blogger at Trading NRG.