Forex Marketz Daily Forex News – Fully Markets Update
Crude oil futures rose this morning, during Asian market hours, after a decline in inventories in the United States crossed the wires overnight, during U.S. trade hours. However, prices are still below their three year high as fuel supplies remain robust and refineries cut production.
As of 1 am GMT, the global benchmark, WTI Brent crude futures were trading at $69.48 per barrel, this is up 10 cents, from their last close. On Monday, Bren hit its highest price point since December, 2014. This was at $70.37 a barrel.
U.S. West Texas Intermediate (WTI) crude futures fetched $64.15 a barrel. This was up 18 cents, from their last close. WTI hit its December 2014 high of $64.89 a barrel on Tuesday.
There is an effort to tighten markets and prop up prices right now. The group of major oil producers in the Organization of the Petroleum Exporting Countries (OPEC) and non-members led by Russia are currently withholding production that started in January 2017. The cuts are set to last until the end of 2018.
The price of the black gold has rallied thanks to a de-stocking of global inventories. This, in part, is thanks to reduced crude production from OPEC and Russia.
Crude Oil Traders React to US Inventories
In economic data news, U.S. crude inventories fell by 5.1 million barrels for the week that ended January 12 to 411.5 million. This is according to data released by the American Petroleum Institute (API). It was released on Wednesday.
The API numbers showed a well-supplied fuel market. This might lead to lower oil demand going forward.
U.S. refinery oil runs fell by 420,000 barrels per day. Refined product stocks did increae. This indicates a well-supplied market.
