Forex Marketz Daily Forex News – Fully Markets Update
Oil prices fell Thursday morning, during Asian trade hours, after a rally that pushed
Prices higher by almost ten, percent since last week, lost momentum. In good news, there are renewed signs of a gradually tightening US market.
There is strong demand, for the black gold, in the United States. This provided prices with support. However, the bad news, ongoing high supplies from OPEC producers are restricting further gains.
The global benchmark, Brent crude futures, by 1:50 am GMT, was trading down 17 cents, or 0.3 percent, at $52.19 per barrel. US West Texas Intermediate (WTI) crude was trading at $49.44 per barrel. This was down 15 cents, or 0.3 percent, from their last settlement on Wednesday.
Technically speaking, US crude is still below the key below $50 per barrel. Despite record US gasoline demand of 9.84 million barrels per day last week. There was also a fall in commercial crude inventories in the week ending July 28 of 1.5 million barrels to 481.9 million barrels. This is according to the Energy Information Administration (EIA).
This is below last year’s levels and indicates a tightening of supply with increasing demand in the United States.
OPEC continues to hurt their Case to Reduce Supply
Investors are showing their disappointment in the Organization of the Petroleum Exporting Countries (OPEC), as their high level of supply is now capping prices.
The high supplies form the cartel come despite a pledge, supported by other producers which include Russia, to restrict output by 1.8 million barrels per day this year running until March 2018. This is an ongoing scheme to tighten the market.
