Forex Marketz Daily Forex News – Fully Markets Update
Crude oil futures are trading at their highest price points since 2014 this morning thanks to continuing OPEC led production cuts. However, there are concerns that the market is over extended.
There has been a broad rally in the oil markets which has fueled investments in future contracts. This includes stocks as well.
As of 1 am GMT, U.S. West Texas Intermediate (WTI) crude futures were trading at $63.40 a barrel. This was up 44 cents, their last close. This is near the December 2014 high of $63.53 a barrel.
The international benchmark, Brent crude futures were fetching $69.15 a barrel. This is a gain of 33 cents above their last close. Brent hit $69.29 Tuesday. It was its highest price level since May 2015 and, and before that, seen in December 2014.
This bull-run, has pushed up crude prices up 13 percent since early December. There are indications of an overextended market.
The Crude Oil Market looks Overextended
In the United States, crude oil production is about to break through 10 million barrels per day this month. This would be close to the global leaders of Russia and Saudi Arabia.
In Asia, the world’s biggest oil buyer of the black gold, refiners are seeing high prices and larger fuel supplies.
The Singapore refinery margins fell this week below $6 per barrel. This is the lowest seasonal price in five years. It is due to high fuel stocks and because the recent rise in feedstock oil prices. This is hurting profits.
Asian oil prices are higher than in the rest of the world. Brent and WTI are below $70 per barrel, but the average price for Asian oil is already at $70.62 per barrel.
