Forex Marketz Daily Forex News – Fully Markets Update
Crude oil futures contracts inched higher overnight, during the North American trade session, into today’s Asian trade session. This comes after data showed that oil inventories in the United States fell last week. This is easing some concerns about a global supply glut.
With that said concerns still remain about the extent of the economic damage caused by the Covid-19 pandemic. This is capping gains.
As of 12:25 am GMT, the international Brent crude oil futures contract added 17 cents to trade at $35.92 per barrel.
The U.S. West Texas Intermediate (WTI) crude futures contract, for front month delivery, was up four cents to trade at $33.53 a barrel
Crude Oil Traders Monitor U.S. Inventory Data for last Week
According to the U.S. Energy Information Administration (EIA) weekly inventory levels fell by five million barrels last week. This was better than the expected drawdown of 1.2 million barrels. Inventory at the key Cushing, Oklahoma, delivery hub fell by 5.6 million barrels.
Oil prices have been rising since the shipping data released by the Organization of the Petroleum Exporting Countries (OPEC), and non-member ally nations led by Russia, called the OPEC+, have been complying with their promise to reduce pumping by 9.7 million barrels per day.
OPEC member nations have been encouraged by the climb in oil prices as countries stick by their pledges to reduce production. The OPEC secretary general said that the cartel has not ruled out further actions to support the market.
Traders Remain Concerned over the Economic Recovery
There are still major concerns surrounding the extent of the economic damage from the great Covid-19 economic shutdown and how long the recovery will take. This has capped gains and kept some selling pressure in place.
Global central bankers remain committed to take any action needed to shore up their economies. This was evident in yesterday’s monthly Federal Reserve Board meeting minutes from their 28-29 April FOMC meeting.
