Forex Marketz Daily Forex News – Fully Markets Update
Crude oil future contracts dipped lower, this morning during Asian trade hours, dampening the recent rally in the black gold. Traders are eying recent comments from OPEC as they increase supply as soon as June. Geopolitical uncertainty kept losses in check.
As of 12 am GMT, the international benchmark, Brent crude fell lower. They were down four cents from their last close to $79.53 a barrel. Brent has rose 35 cents on Tuesday. Last week, the global benchmark was trading at $80.50 a barrel. This was its highest price since November 2014.
U.S. West Texas Intermediate (WTI) crude futures were also down. Thy fell two cents to $72.18 a barrel. On Tuesday they were at $72.83 a barrel. Its best price point since November 2014.
Crude Oil Traders keep an eye on Geopolitical Risks and OPEC News
Looking at headlines, geopolitical uncertainty is keeping traders on edge. Secretary of State Pompeo demanded that Iran halt its uranium enrichment. Pompeo also demanded that Iran allow inspectors access to the entire country. This could cause the U.S. to slap new sanction against Tehran limiting oil supply from the OPEC member nation.
Traders are also keeping an eye on scheduled talks between
Russia and Saudi Arabia. They will discuss if they should implement a soft relaxation surrounding over compliance and their current scheme to reduce global supply.
OPEC might decide to raise output by as June. They are concerned about Iranian and Venezuelan supply. The United States has raised new concerns that recent rally in the black gold was overinflated by OPEC supply cuts.
The OPEC-led supply curbs have largely rebalanced a global supply. This was largely based on the scheme’s original goals. Global inventory of the black gold continues to fall.
