Oil: buyers began to take profit from growth

On Wednesday, October 27, oil trading closed lower. Brent crude oil fell 2.45% to $ 84.04 per barrel. The rate of decline in oil prices accelerated after the release of the report on weekly stocks in the United States.

According to the data provided by the US Department of Energy, oil reserves for the week of October 22 increased by 4.267 million barrels (the forecast was +1.914 million barrels). Gasoline stocks decreased by 1.99 million (the forecast was -2.7 million), distillate stocks - by 432 thousand barrels (the forecast was -2.311 million). Oil production remained in the region of 11.3 million barrels per day and remains below levels prior to the onset of Hurricane Ida.

Oil prices fell in the wake of falling prices for coal, aluminum, iron ore and gas. Coal prices have dropped about 40% from record highs reached last week due to scarcity. China's state planning authority has asked major coal mining provinces to investigate and suppress illegal coal storage and take measures to build up reserves.

On Thursday, October 28, the price of Brent crude oil fell 1.64% to $ 82.64. Buyers fled from the market, closing long positions. The bullish trend is not broken, but it can be seen that buyers have weakened and are losing positions. Support is at $ 81.75. If sellers pass it, then the road will open for them to the level of 79.35. A moderate recovery to $ 84.50 can be considered for today.