Forex Marketz Daily Forex News – Fully Markets Update
Overnight, during the North American trade session, crude oil futures plummeted about two percent. Price action remains on the back foot during the Asian trade hours but have pared some losses.
Traders are reacting to a surprise inventory build in the United States. They are also digesting recent comments made by President Donald Trump on the trade war with China as well as with Iran in the Middle East.
The U.S. dollar has also rallied, which sent commodity prices lower after the U.S. Congress announced that they were moving ahead with impeachment proceedings against the U.S. President. The dollar is the world’s most liquid currency and considered a safe haven Forex asset.
The international crude oil futures contract, Brent, overnight, shed over one percent to trade at $62.45 a barrel.
The U.S. West Texas Intermediate (WTI) crude futures contract shed 1.4 percent to trade at $56.49 a barrel.
According to the Energy Information Administration, U.S. oil inventory gained 2.4 million barrels last week. The markets had expected a contraction of 249K barrels.
Crude Oil Traders Monitor Trade War Commentary and Iranian Tensions in the ME
On Wednesday, U.S. President Donald Trump said that the trade war with China could come to an end sooner than what people think. This trade spat is nearly 15 months long now.
On Tuesday, if you recall, President Trump told the United Nations General Assembly that he was unhappy with China’s unfair trade practices. He said that he would not accept a “bad deal.”
The U.S. President also commented that he sees a road to peace with Iran. This comes as a surprise considering his hawkish comments after the September 14 attack on Saudi Arabian oil refiners and infrastructure. Saudi Arabia, the United States and the euro area have all blamed Iran for that attack.
