Forex Marketz Daily Forex News – Fully Markets Update
Friday and into today’s Asian trade session, both the international Brent crude and WTI futures contracts rose higher. Brent is back above the key $65 per barrel level thanks to supply cuts led by OPEC member nations and non-members led by Russia. Last week, Saudi Arabia pledged to reduce supply above the pledge. This move was cheered by traders.
Friday, the international oil benchmark closed up $1.68 higher to settle at $66.25 a barrel. This was a gain of 2.6 percent. Brent closed at a three month closing high. This price was last hit back on November 19 on Friday. Brent gained 6.7 percent for the week.
U.S. West Texas Intermediate (WTI) crude futures gained $1.18 to trade at $55.58 per barrel. This was a gain of 2.2 percent and the best closing price since November 19. WTI gained 5.4 percent for the week.
Both benchmark oil futures are trading steady during today’s Asian trade session.
Traders Look at OPEC Trade Cuts and Support Crude Oil
OPEC, along with non-member nations led by Russia, agreed to voluntary supply cuts. These cuts started on January 1. Its goal was to tighten the oil market.
Last week, in the headlines, de facto OPEC leader Saudi Arabia said that they would reduce production by another half a million barrels per day for the month of March. This is above the pledged amount and this sent oil prices surging.
The cuts come alongside U.S. sanctions on Venezuelan and Iranian crude. This is hurting both OPEC nations ability to export oil. Also, in the news supporting oil prices, there are problems with Libyan output thanks to ongoing civil unrest.
Traders are also looking at trade talks between the United States and China. Both countries are scheduled to continue talks in Washington DC and hope to reach a deal before the March 1 deadline.
