Oil collapses through its price supports on weaker Chinese export numbers and a massive U.S. inventory build by American firms for the 1st Week in november 2023. A wider middle eastern conflict cannot be ruled out and/or Iran pushing for oil sanctions/embargo against Israel and the West.

 

Key points on crude sell off:

• U.S. weekly oil inventory jumped to 11.9 million barrels, after the previous week at just 1.34 million.  A inventory build of 10 million in one week, which appears to be a stockpile initiation by U.S. firms in lieu of a wider Middle Eastern conflict and possible oil disruption.  However, the U.S. government Strategic Petroleum Reserves (SPR) is still depressed at 40 year lows.

• China slowdown.  Exports for October collapse to -6.4, with market expectations of a fall to -3.3%.  Pointing very weak global demand and supply chain issues within China's manufacturing base.   

Do not dismiss: 

• Despite U.S. and U.K/EU lawmakers all traveling to the Middle East to gauge the oil producing countries actions on Israel's disproportionate military actions against the Palestinian people re: Hamas terror attack on Israel October 7th 2023.  Iran via OPEC may push to cut oil production to the bare minimum and even implement an oil embargo on Israel (the country is a net importer) and its Western allies/suppliers of weaponry.

Price resistance: @ 78, 80, 81, 84

Current bid/s: @ 77