Forex Marketz Daily Forex News – Fully Markets Update
Crude oil futures rose during Asian trade hours this morning. Price action was supported by rising tensions in the Middle East. However, rising output in the United States and weak equity markets capped any further gains.
As of 1:30 am GMT U.S. West Texas Intermediate (WTI) crude futures were trading at $62.31 a barrel. This was up 25 cents, or 0.4 percent, from their yesterday close.
Brent crude futures, the international benchmark, were fetching $66.26 per barrel. This was up 21 cents, or 0.3 percent on the morning.
Oil traders said that there are rising worries in the Middle East. It is likely that the United States may impose new sanctions on Iran. There are also rising tensions between Saudi Arabia and Iran.
Adding to trader worries, there is Venezuela’s eroding oil production. This also buoyed the oil markets this morning.
Crude Oil Traders Worry about Global Tensions and Production
The International Energy Agency said that Venezuela, which is embattled in an economic crisis has cut oil production by almost fifty percent since early 2005. It is well below two million barrels per day. The country is “clearly vulnerable to an accelerated decline.” This disruption could tip global markets into a supply deficit.
A decline in global equity prices, also capped gains with the black gold. Markets are under pressure with concerns over a possible trade war between the United States, China and other major economies. There are also fears of stiffer regulations as Facebook came under fire after a report that they allowed improper access to user data.
Also on trader minds has been the ever increasing production in the United State. Production is up 20 percent since 2016 to 10.38 million barrels per day. This is better than top producer Saudi Arabia.
