Forex Marketz Daily Forex News – Fully Markets Update
Crude oil prices fell from multi-year highs during the Asian trade hours this morning. There is renewed uncertainty regarding a possible extension of output cuts by OPEC and non-cartel members. There are also renewed expectations of higher supply, out of the United States and Canada, as the Keystone pipeline restarts.
As of 1:30 am GMT, U.S. West Texas Intermediate (WTI) futures fell 24 cents to $57.87 a barrel. The shed 1.4 percent in the previous session.
U.S. crude touched $59.05 a barrel on Friday. This was it’s the highest price point since mid-2015. The rally was fueled by the closure of the Keystone pipeline. This pipeline is one of Canada’s main oil export routes to the United States.
Yesterday, TransCanada, who owns the pipeline, said it would restart the 590,000 barrel per day pipeline at reduced pressure today. They have gotten approval from U.S. regulators.
The global benchmark, Brent crude fell to $63.73 a barrel. This is down 11 cents from yesterday’s close.
Crude Oil Traders watch OPEC Headlines
There is new trader uncertainty whether Russia is determined to join with OPEC producers in extending crude production curbs beyond next March. This has weighed on the markets.
Members of the Organization of the Petroleum Exporting Countries (OPEC) and other key producers, which includes Russia, are meeting on November to decide whether or not to continue with the supply curbs from last January. This was an agreement to withhold 1.8 million barrels per day of production.
Russia’s economy was negatively affected, in October, by the supply reduction. This agreement saw Moscow agreeing to cut output by 300,000 barrels per day. These were comment by Economy Minister Maxim Oreshkin on November 23.
The outcome of the upcoming OPEC meeting is a now up in the air as the market faces new downside risks.
Risks to oil prices are now skewed to downside this week. Current prices, positioning already reflect the probability of a nine month extension. Markets were hoping for another year long deal.
