Crude oil prices rose on Monday from multi-week lows after Venezuela said OPEC and non-OPEC producers were close to a deal to stabilize the market and as clashes in Libya disrupted attempts to boost crude exports.
RBOB gasoline futures rose to the highest level since June, giving some support to oil that is suffering from seasonal weakness and concerns about oversupply. Price spikes along the East Coast are inevitable as cash buyers scramble to secure supply.
The global equity selloff resumed on Thursday with most Asian indices declining for the sixth consecutive day. Europe also opened in red as dropping crude oil prices and uncertainty over central banks policies kept investors on edge.
Crude oil prices saw a quick reaction after the Energy Information Agency showed a draw in a surprise drop in crude but fell sharply as traders mulled an increase is U.S. crude oil production as well as a colonial pipeline inspired increase in distillate stocks.
Currently the spot WTI and Brent crude oil contracts seems to be heading toward their respective technical trading range lows. If most of the news remains biased to the bearish side the aforementioned contracts are likely to test the lows from the first of the month and if breached could result in an even deeper slide heading into the informal OPEC/non-OPEC meeting in Algeria in a few weeks.