EMD030 - EIA Confirms Crude Glut

EMD030 - EIA Confirms Crude Glut

Energy markets stand at an inventory crossroads on Wednesday, October 8, 2025. WTI hovers near $62.4 and Brent near $65.9—firm, not fierce—while yesterday’s API reported roughly a +2.78M bbl crude build for the week ended Oct 3. That pressures the post-OPEC+ bounce (137k bpd for November) and keeps rallies tactical until the EIA confirms otherwise. Policy and geopolitics: Russia steps up strikes on Ukraine’s energy grid; Ukraine targets Russian refineries/terminals. The EU moves on shadow-fleet enforcement; UN Iran snapback pushes discounts rather than disappearances. Net: modest risk premium, same surplus gravity. Natural gas holds its own near $3.50. Cooler mid-October forecasts, a smaller storage build last week, and steady LNG flows support the bid. Production remains high, but seasonal demand and exports keep momentum toward $3.50–$3.70 into heating season (weather caveats apply). Key levels: WTI pivot $62.67 (acceptance opens $63–$64.50; failure risks $61.50 → $60). Brent must hold $65 and test $66.50. Gas: guard $3.40; a firm close above $3.50 keeps $3.65–$3.70 in play. Catalyst watch: EIA petroleum status (confirm/deny API build), EU shadow-fleet actions, Russian refinery outages, U.S. production prints and demand revisions. Energy capital inquiries: energymarkets@protonmail.com — subject: Energy Capital.

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