Before we proceed towards today's technical outlook, let us recall that the WTI price has been under a selling pressure as trade tensions between the United States and China have heated up.
"We're pleased with the increase in production from the second quarter of 2018 recognizing it reflects contributions from just one of our key growth areas, the Permian", CEO Darren Woods said.
Futures contracts of Brent crude hit a 10-week low of $72.46 a bbl on the Intercontinental Exchange today on report that the U.S. government has agreed to let eight countries to continue buying oil from Iran even after the sanctions on Tehran come into effect next week, analysts said. US crude oil production exceeded the Russian Ministry of Energy's estimated August production of 11.2 million b/d, making the United States the leading crude oil producer in the world.
Crude futures traded choppily on Wednesday, with Brent rising by $1 a barrel earlier in the session before retreating.
The violation of $67 can lead oil prices towards $67.75.
Last week, hedge funds and money managers cut their bets that oil prices would keep rising to the lowest level in more than a year, according to Reuters market analyst John Kemp.More news: Walton on Lakers' 2-5 start: 'Nobody feels sorry for us'
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Crude oil futures fell Rs 87 to Rs 4,805 per barrel on Thursday as speculators offloaded bets amid a weak trend overseas.
"It's a very confusing time for the oil market, which is grappling with a very fundamental question about whether we have a supply problem or not and the answer has been unclear", said Tamar Essner, director of energy and utilities at Nasdaq Corporate Solutions.
The International Energy Agency on Tuesday said that high oil prices were hurting consumers and could dent fuel demand at a time of slowing global economic activity. Investors are weighing market sentiment ahead of new US sanctions on Iran that begin on November 4.
On Sunday, sanctions against Iran exports are scheduled to go back into effect.
Investors will look to official government data on US inventories due on Wednesday. The last week of October saw crude oil continue to trade bearish owing to firm Dollars in broad market and bearish equity markets putting pressure on purchasing power of investors from Asia and other emerging markets. The U.S. surpassed Russian Federation in August to claim the title of world's top oil producer, with the largest year-on-year output increase in U.S. history.
"We double down on our Brent crude trade adding a further 137 lots at $72.80, as we hold a strong conviction towards higher prices given the asymmetric risk profile generated from Iranian sanctions in the coming months", says Bart Melek, head of commodity strategy at TD Securities.