Forex Marketz Daily Forex News – Fully Markets Update
Crude oil prices pushed higher during Asian trade hours this morning. Oil was boosted by comments from Saudi Arabia that OPEC and Russian led production restrictions that began in 2017, will need to be extended into 2019. This is in order to tighten the market and restore some balance.
The rise in oil prices went against global equites and other commodities, which moved lower as worries regarding a trade standoff between the United States and China grew.
President Donald Trump signed a presidential memorandum that could impose tariffs of $60 billion of imports from China. China said that they would impose tariffs on up to $3 billion of U.S. imports.
As of 1 am GMT, U.S. West Texas Intermediate (WTI) crude futures were trading at $65.09 a barrel. This was up 79 cents from their previous close.
Brent crude futures, the international benchmark, were fetching $69.64 per barrel. This was up 73 cents.
Crude Oil finds Support from OPEC Supply Cuts
Today’s driver for the price increase was due to a statement from Saudi Arabian Energy Minister Khalid al-Falih. He said that OPEC members will need to continue coordinating with Russia and non-OPEC countries on supply curbs into 2019. They need to further reduce global oil inventories.
The Organization of the Petroleum Exporting Countries (OPEC) as well as a group of non-OPEC members led by Russia, struck a production reduction agreement in January 2017. That agreement was to remove 1.8 million barrels per day from the markets in order reduce a supply glut.
The scheme will expire at the end of this year. However, Saudi Arabia seems to be pushing for an extension to the deal.
