Forex Marketz Daily Forex News – Fully Markets Update
Crude oil prices were stable during the morning Asian trade session. The black gold was supported by healthy global economic growth outlook and a weaker dollar. This could support demand for oil.
However, oil prices, despite outlook, remain well below recent highs. This is thanks to signs of global oversupply. There is also the matter of rising U.S. inventories thanks to ever increasing physical flows of the black gold.
As of 1:30 am GMT, U.S. West Texas Intermediate (WTI) crude futures trading at $59.17 a barrel. This was down two cents from their last close. This contract was trading above $65 in earlier in the month.
Brent crude futures were trading at $62.77 per barrel. The global benchmark was up five cents from their last settlement. Brent was above $70 a barrel earlier in February.
Ongoing weakness in the U.S. dollar, stokes the demand from countries using other currencies to buy commodities like oil. There is also a healthy global economic growth spurt. This is providing some support for oil, according to traders.
Crude Oil Traders watch Inventory Numbers
Looking at economic data, yesterday the American Petroleum Institute said that U.S. oil inventories were up by 3.9 million barrels in the week that ended February 9. This brings the inventory level to 422.4 million.
This increase was largely thanks to soaring crude production, in the States. Their production is now up over twenty percent since 2016. It is now over 10 million barrels per day. This is better output than Saudi Arabia and close to the world’s top producer, Russia. This is undermining OPEC’s efforts to curb global supplies.
U.S. shale oil is now appearing in other global markets.
