Forex Marketz Daily Forex News – Fully Markets Update
Crude oil futures, another heavily traded commodity, held steady Friday morning during Asian trade hours. There is strong global demand, continuing supply cuts from OPEC member nations as well as non-members and possible crippling sanctions led by the United States against OPEC member Iran supporting prices.
Still, price levels a still trading below multiyear highs, set overnight during North American trade hours. There is continuing expanding output from the United States capping any strong rebound in prices.
As of 12:45 am GMT, the global benchmark, Brent crude futures were a bit higher. The rose five cents to trade at $79.48 per barrel their last settlement on Thursday. Brent was above $80 for the first time since November 2014 during the North American trade session.
U.S. West Texas Intermediate (WTI) crude futures were also higher. They moved up six cents from their last close to trade at $71.55 a barrel.
Crude Oil Traders still watch OPEC and U.S. Production Headlines Closely
Looking at headlines affecting the oil markets, oil prices have found support with the voluntary supply cuts led by the Organization of the Petroleum Exporting Countries (OPEC). This includes non-member nations, led by Russia, and have a goal of rebalancing and tightening the market.
There is also strong demand for the black gold. Especially in Asia. Also a U.S. announcement, from earlier this month, to slap sanctions against OPEC nation Iran. As a result, the international benchmark future, Brent, has strengthened by twenty percent since the start of 2018.
Looking at other headlines, out of the United States, shale oil production has soared by more than a 25 percent over the last two years. Production in the U.S. is now at a record 10.72 million barrels per day.
That puts the United States near top producer Russia. The Russian Federation pumps around 11 million barrels per day.
As a result of the increased production out of the world’s largest economy, U.S. shale is appearing, more and more globally dampening prices.
