Forex Marketz Daily Forex News – Fully Markets Update
The price of US WTI light and sweet crude, saw its largest daily drop in a month yesterday. The price of the black gold continues to fall lower this morning, The ratings company, Fitch, released a report tat said that lower production costs and considerable growth potential for U.S. shale crude oil will keep prices below $60 per barrel in the long term. Also in the spotlight, OPEC, output rose by 120,000 barrels per day in September. This is compared with the month prior. Also in Middle Eastern oil news, is another shutdown of Libya’s Shahara field. This is that country’s largest and that news passed unnoticed.
Looking at economic data, the weekly API inventory survey, out of the United States, is now in focus. Compared to the EIA figures which are expected to show stockpiles lost 456.4k barrels last week. Prices may continue to fall if API reports a smaller outflow or even a surprise build in stockpiles. They might rebound if a larger drawdown in inventories is reported. Right now, there is a lull in oil related news flow. This may allow the black gold a bit of time to consolidate losses.
Crude Oil Prices inch lower in Asian Trade
As of 12:30 am GMT, U.S. West Texas Intermediate (WTI) oil futures was trading at $50.05 per barrel. This down 37 cents, or 0.7 percent, from their last settlement.
Brent futures, the international benchmark, fell 35 cents, or 0.6 percent. It was last trading at $55.65 a barrel.
Traders said the fall lower, this morning, is over concerns that a third quarter (Q3) market rally that had lifted Brent to mid-2015 highs by late September was blown out of proportion and the balloon has popped.
