Forex Marketz Daily Forex News – Fully Markets Update
Crude oil futures are continue to find support thanks to tightening global supplies, as both WTI contracts trade very close to the key psychologically level of $70 per barrel. Analysts are now warning that prices are a bit stretched and will not be able to maintain at this level for much longer. Prices have surged 13 percent, this month alone.
Prices have been supported by production curbs in OPEC nations and non-OPEC members led by Russia. There is also a healthy demand growth.
As of 1:30 AM GMT, U.S. West Texas Intermediate (WTI) crude futures were at $63.93 a barrel. This is up 20 cents from their last close. WTI hit its December 2014 peak at $64.89 a barrel on Tuesday
Brent crude futures were at $69.35. This is up 20 cents, or 0.3 percent, from their last settlement.
Brent, on Monday, hit $70.37 a barrel. This was its highest price point since December, 2014. It was also the beginning of a three year oil price slump.
OPEC Helps Prices butt the US Shale output Does Not
In an effort to tighten markets, the Organization of the Petroleum Exporting Countries (OPEC) and non-members, led by Russia started to cut production in January 2017. These cuts are set to last through 2018.
This supply reduction scheme has coincided with healthy oil demand and economic growth. This, in turn has pushed up oil prices by more than 13 percent since December.
U.S. oil inventory fell by 11.2 million barrels in the week that ended January 5 to 416.6 million barrels. This comes from data released by the American Petroleum Institute. Shale production, in the United States, however, continues to increase.
