US light crude drifts lower

It appears that US light crude oil is on a collision course with the $100 level.

Now that fears over Syria and Libya have receded from the front pages, the squeeze that oil prices were under has reduced. This easing of global prices has given markets a chance to once again stockpile reserve supplies, as today’s US oil inventory figures of 4 million, as opposed to the expected 3.4 million, would appear to back up.

Global levels of peace are as stable as they ever are, which is helping to ensure that there is no panic being forced onto the market. At the same time, Saudi Arabia has shipped out its largest monthly quota of oil in the last fourteen months. Of course, the Organization of the Petroleum Exporting Countries has a few issues to resolve at home, with its leadership still not particularly clear.

Since the end of August, US light crude has dropped almost 10.5% to just above the $100 level. Although this is not a particularly important technical level, it is certainly an important psychological one.  

Daily US light crude chart

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

Find articles by analysts

This information has been prepared by IG, a trading name of IG Markets Limited and IG Markets South Africa Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. International accounts are offered by IG Markets Limited in the UK (FCA Number 195355), a juristic representative of IG Markets South Africa Limited (FSP No 41393). South African residents are required to obtain the necessary tax clearance certificates in line with their foreign investment allowance and may not use credit or debit cards to fund their international account.