Forex Marketz Daily Forex News – Fully Markets Update
Oil futures contract prices moved lower this morning as part of a broad based selloff throughout the Asian region. There are signs that supply is tightening but the terror attack in Barcelona and ongoing White House drama stateside put pressure on this morning to go risk-off.
As of 12:30 am GMT, Brent crude futures, the international benchmark for oil prices, were at $50.93 per barrel. This was down 10 cents, or 0.2 percent, from their previous.
U.S. West Texas Intermediate (WTI) crude futures was trading at $47.02 a barrel. This was down 7 cents, or 0.2 percent.
Oil traders said that the crude selloff came alongside a selloff across many other financial markets. This includes Wall Street and Asian and Pacific Rim bourses. Investors have a growing skepticism that President Donald Trump, who is embroiled in controversy, can actually achieve his fiscal policy agenda.
Global Oil Supplies Tighten a Bit
The fall in oil prices comes despite indications, especially in the United States, that oil markets were tightening.
Data, recently released, showed a 13 percent jump in production since mid-2016 to 9.5 million barrels per day. However, the US commercial crude inventories have fallen 13 percent from their March record highs to below their 2016 levels.
EIA data showed that inventories of the black gold fell by 8.95 million barrels to 466.5 million barrels last week. This is the biggest weekly decline since September.
Crude prices will depend on output levels from the Organization of the Petroleum Exporting Countries (OPEC). Together with non OPEC producers like Russia, has pledged to restrict output by 1.8 million barrels per day. This scheme is in place till March 2018. Its goal is to tighten the market and support prices.
