​EBC Markets Briefing | Crude prices struggle; Meta droops on "splurge"

Oil prices eased on Friday, heading for a third straight monthly decline, as rising supply from major producers globally offset the impact of tougher sanctions on Russian exports.

China and India have tried to strike a balance between asserting their sovereignty in the face of unilateral the sanctions and ensuring their commercial interests are not compromised by noncompliance.

Both Brent and WTI are set to fall about 3% in October as rising supply is expected to exceed demand growth this year, with the OPEC+ ramping up output to gain market share.

Trump said on Thursday he had agreed to reduce tariffs on China to 47% in exchange for Beijing resuming US soybean purchases, loosening rare earths exports control and cracking down on the illicit trade of fentanyl.

But with both countries increasingly willing to play hardball over areas of economic and geopolitical competition, many questions remain about how long any trade detente may last.

US oil stocks fell last week as imports dwindled to their lowest level since February, according to the EIA. The report also showed US production reached a record of 13.6 million bpd.

WTI crude was rejected around 50 SMA and has moved sideways since then. The descending trendline remains intact, pointing to further pains ahead.

Asset recap

As of market close on 30 October, among EBC products, US natural gas and Bristol-Myers Squibb shares led gains. Trump has said that China has agreed to begin the process of purchasing US energy.

Bristol Myers Squibb beat Wall Street estimates for Q3 revenue, as strong growth of its cancer immunotherapy and blood thinner Eliquis helped the company overcome a hit from generic competition for several older drugs.

Meta Platforms suffered its biggest one-day loss since October 2022 as scepticism about the payoff from its aggressive artificial intelligence spending plans overshadowed strong results.

EBC Financial Group Disclaimer: This material is for general information purposes only and is not intended as (and should not be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by EBC Global Financial Collaboration or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.

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