Forex Marketz Daily Forex News – Fully Markets Update
Crude oil futures contracts have been climbing and continue to hold onto recent gains into the Asian trade session on Tuesday.
Oil traders are monitoring global oil producers, including the Organization for Petroleum Exporting Countries (OPEC), as the stick to commitments to reduce oil production. Coronavirus restrictions are also being eased which is increasing the demand for gasoline and other oil derivatives.
As of 1 am GMT, the U.S. West Texas Intermediate (WTI) crude oil futures contract, for front end delivery, was trading higher. The WTI contract was up 75 cents or 2.3 percent to trade at $34 per barrel.
This contract did not trade on Monday as the United States was celebrating their Memorial Day Holiday and their financial markets were closed.
The international benchmark, which gained 1.1 percent in thin holiday volume on Monday, was also trading higher. The Brent crude oil futures contract added 0.7 percent to trade at $35.76 per barrel.
Crude Oil Traders Monitor comments on Production and Pumping
Overnight, Russian commented that oil output had dropped almost 8.5 million barrels per day for the month of May. This will continue through May in accordance with their deal with OPEC.
OPEC and their non-member allies, known as the OPEC + are cutting production to reduce global oil supply and support the price during a time of low demand for oil and other energy products.
Russia’s Energy Minster, Alexander Novak, said that the rise in global demand for fuel should help reduce the global surplus of between 7 to 12 million barrels by June or July.
The OPEC + nations are meeting in early June to discuss maintaining the current agreement to boost the price of oil, that has lost 45 percent since January/ The OPEC + nations, back in April, agreed to cut production by ten million barrels per day for May and June.
