The DoE weekly petroleum status report showed that the US commercial crude oil inventory increased by 6.49 million barrels last week, smashing consensus forecast of a 2.8 million rise.
This marks the fourth consecutive week of stockpile build-up since mid-Sep, and are now back up to 416.4 million barrels. Oil price and inventory exhibited strong negative correlations over the past five years, therefore rising stockpile is putting oil price at risk of correction.
Brent oil price has retraced to US$80 area after hitting recent high of $86.4 in early October. Technically, short-term trend has turned bearish with both SuperTrend (10,2) and 10-Day SMA both slopping downwards. Momentum indicator DMI signalled that bullish momentum is running out of steam too. By drawing a Fibonacci retracement, we can find an immediate support level at around US$80.1 area, which is the 38.2% level. Breaking down below this level will open up for more downsides towards the $78.2 (50%) and $76.2 (61.8%) areas.
In Singapore, dropping oil price is not a good news to the stock market as the oil & gas sector will probably face a deeper pullback. The market opened broadly lower following a weak US session overnight, and investors are waiting for earnings season to paint a clearer picture of future directions. Right now, some blue chip companies are trading near to 20-month low, and dividend yields are at attractive levels. Market needs positive earnings surprises to underpin negative overseas concerns.
Crude Oil Brent - Cash
Crude Oil Stocks (Net Change)
STI Earnings Calendar
|Singapore Press Holdings Ltd||15/10/2018||Y 18||0.133||27.80||SINGAPORE|
|Keppel Corp Ltd||18/10/2018||Q3 18||0.17||SINGAPORE|
|Singapore Exchange Ltd||19/10/2018||Q1 19||0.082||SINGAPORE|
|CapitaLand Mall Trust||25/10/2018||Q3 18||0.03||SINGAPORE|
|Ascendas Real Estate Investment||25/10/2018||Q2 19||SINGAPORE|
|United Overseas Bank Ltd||26/10/2018||Q3 18||0.613||SINGAPORE|
|CapitaLand Commercial Trust||26/10/2018||Q3 18||SINGAPORE|
|Hutchison Port Holdings Trust||30/10/2018||Q3 18||0.02||SINGAPORE|
|Overseas-Chinese Banking Corp L||1/11/2018||Q3 18||0.268||SINGAPORE|
|Centure Corp Ltd||2/11/2018||Q3 18||SINGAPORE|
|Sembcorp Industries Ltd||2/11/2018||Q3 18||0.047||SINGAPORE|
|DBS Group Holdings Ltd||5/11/2018||Q3 18||0.57||SINGAPORE|
|Genting Singapore Ltd||5/11/2018||Q3 18||0.022||SINGAPORE|
|Singapore Airlines Ltd||7/11/2018||Q2 19||0.103||SINGAPORE|
|Singapore Technologies Engineering||8/11/2018||Q3 18||0.042||SINGAPORE|
|Jardine Cycle & Carriage Ltd||8/11/2018||Q3 18||0.94||SINGAPORE|
|CapitaLand Ltd||8/11/2018||Q3 18||0.05||SINGAPORE|
|ComfortDelGro Corp Ltd||9/11/2018||Q3 18||0.041||SINGAPORE|
|City Developments Ltd||9/11/2018||Q3 18||0.165||SINGAPORE|
|UOL Group Ltd||9/11/2018||Q3 18||0.12||SINGAPORE|
|SATS Ltd||9/11/2018||Q2 19||0.056||SINGAPORE|
|Singapore Telecomunications Limited||9/11/2018||Q2 19||0.054||SINGAPORE|
|Yangzijiang Shipbuilding (Holdings) Limited||9/11/2018||Q3 18||0.165||CHINA|
|Wilmar International Ltd||13/11/2018||Q3 18||0.053||SINGAPORE|
|Golden Agri-Resources Ltd||14/11/2018||Q3 18||0.002||SINGAPORE|
|Thai Beverage PCL||23/11/2018||Y 18||0.91||THAILAND|
By Margaret Yang in Singapore
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