{"id":162076,"date":"2019-12-19T10:45:51","date_gmt":"2019-12-19T15:45:51","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=162076"},"modified":"2019-12-19T07:50:06","modified_gmt":"2019-12-19T12:50:06","slug":"brent-analysis-tighter-us-crude-inventories-bullish-for-brent","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2019\/12\/brent-analysis-tighter-us-crude-inventories-bullish-for-brent\/","title":{"rendered":"BRENT Analysis: Tighter US crude inventories bullish for BRENT"},"content":{"rendered":"
December 19, 2019<\/div>
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By IFCMarkets<\/a><\/strong><\/p>\n

Tighter US crude inventories bullish for BRENT<\/strong><\/p>\n

US crude oil inventories declined last week. Will the BRENT<\/a> rise?<\/p>\n

The crude oil output is set to be cut by 500,000 barrels per day starting in January by the Organization of the Petroleum Exporting Countries and other major producers, including Russia, as agreed by OPEC earlier this month. And the rising premium held by the nearby Brent contract over later-dated contracts confirm decline in global inventories according to Warren Patterson, head of commodities strategy at ING. Expectations of tighter supplies are bullish for Brent. On the short term supply side, the Energy Information Administration reported US crude inventory fell by 1.1 million barrels last week. Though the decline was smaller than SP Global Platts analysts forecast, data showed increased supply for gasoline up by 0.5% over year for the past four. It is an indication of recovering gasoline demand.<\/p>\n

\"BRENT<\/p>\n

On the daily timeframe the BRENT: D1<\/b> is rising above 200-day moving average MA(200), which is still inclined lower. The price is tesing Fibonacci 38.2 level, and further movement higher will confirm upward momentum.<\/p>\n