Forex Marketz Daily Forex News – Fully Markets Update
Crude oil prices climbed one percent during the Asian trade hours Tuesday morning. Traders were eying OPEC led supply cuts along with non-member nations led by Russia.
However, surging production in the United States along with a cloudy global economic outlook, capped gains this morning.
At 3 am GMT, the international benchmark, Brent crude contract was up. This contract was trading at $59.64 per barrel. This was up 65 cents, or 1.1 percent, from yesterday’s settlement.
U.S. West Texas Intermediate (WTI) crude futures were also higher. This contract was up 58 cents, 1.2 percent, to trade at $51.09 per barrel.
Crude Traders look at OPEC Supply Cuts this Morning
Looking at today’s headlines, the Middle East-dominated cartel called Organization of the Petroleum Exporting Countries (OPEC) along with non-member nations, including Russia, agreed in January 2018 to reduce supply. This was to keep in check a global supply glut.
The United States, once again, last November started sanctions against Iran’s oil exports. Washington did give sanctions waivers to Iran’s biggest customers. These were, for a large part, in Asia. However Iran’s exports have fallen since the sanctions.
As OPEC and Russia have cut production and Iran is being hit by sanctions, oil production, in the United States, is at a record high of hit a record 11.7 million barrels per day. This was by December of 2018. This is capping headway in oil prices.
