Forex Marketz Daily Forex News – Fully Markets Update
Crude oil contracts firmed this morning during Asian trade hours. This comes as the international benchmark contract, WTI Brent, inched even closer to $80 per barrel. This level has not been seen since November 2014. There are tightening global supplies and strong demand for the black gold.
As of 12:30 am GMT, Brent crude futures were higher. They rose to $79.32 per barrel. This was up four cents from their last settlement.
U.S. West Texas Intermediate (WTI) crude futures gained 19 cents from their previous close. They were at $71.68 a barrel.
Brent crude futures are now close to breaking above $80 per barrel. There are geopolitical risks supporting the contract. There is also a fall in inventories in the U.S. This made investors a bit happy overnight into this morning.
Crude Oil Inventories fall in the United States according to Official Data
Looking at economic data, U.S. oil stocks fell according to the International Energy Agency (IEA). The fell by 1.4 million barrels for the week ending May 11 to come in at 32.34 million barrels.
The International Energy Agency (IEA), overnight yesterday, they are lowering their 2018 global oil demand growth forecast from 1.5 million barrels per day to 1.4 million barrels per day.
The IEA said global oil demand would average 99.2 million bpd in 2018.
Supply, globally, is at 98 million barrels per day thanks to supply cuts led by the Organization of the Petroleum Exporting Countries (OPEC), and non-member nations led by Russia. The IEA said that “strong non-OPEC growth … will grow by 1.87 million bpd in 2018.”
There is substantial production increase in the United States. Shale oil output has risen 27 percent over the past two years, to 10.72 million barrels per day. Only Russia pumps more at nearly 11 million barrels per day.
