Forex Marketz Daily Forex News – Fully Markets Update
Crude prices, in the United States, are trading near two year highs, kicking off the week during Asian trade hours. This is on news of the closure of the Keystone pipeline. This is a key access that connects Canada and the United States. There are also investor expectations of OPEC-led supply cuts being extended at this month’s meeting in Brussels. This is also supporting the market.
As of 12:30 am GMT, U.S. West Texas Intermediate (WTI) crude was trading at $58.91 a barrel. This is only four cents below their last settlement. It remains close to its two year high of $59.05. This was reached on Friday.
The global benchmark for oil, Brent crude was trading at $63.84 a barrel. This is pretty much unchanged from their last close.
Traders are still watching the closure of the 590,000 barrels per day Keystone pipeline. This closure comes after a spill. This has contributed to an increase of U.S. crude as inventory is reduced. This is a key contributor of supporting U.S. WTI futures for now.
WTI is trading near $59 per barrel. This is a 38 percent increase in price since June. Coincidently, this oil one of the best performing assets classes since mid-June.
Crude Oil Traders also watch OPEC News
The oil commodity markets have also been aware that supply has been tightening. This is thanks to a global effort by the Organization of the Petroleum Exporting Countries, also known as OPEC. There is a current agreement between OPEC other world suppliers which include Russia, to withhold 1.8 million barrels per day of output. This is in place since January.
The current deal expires in March 2018. However, OPEC will meet on November 30 to discuss this policy. Investors are counting on an extension to this deal through 2019.
