Forex Marketz Daily Forex News – Fully Markets Update
US WTI light and sweet crude oil contract pushed higher as the bulls came out. Seller lost some confidence below $50per barrel. There were also a handful of headlines driving crude higher, as well.
Towards the end of the week, the EIA inventory report showed that the expected drawdown on US inventories, for the week ending October 6, came in stronger than expected. Also, there was OPEC news. OPEC predicted better demand for crude in 2018. This will be due to growth in consumption ahead of the November OPEC meeting in Vienna. This is scheduled for next month. There are also news reports that Kurdish troops have moved into the oil rich region of Iraq.
Headlines appear to Support Crude Prices
News headlines appear to be supporting the price of oil for a number of reasons. The International Energy Agency (IEA) noted, in their monthly report that OPEC supply cuts have seemingly stabilized the market. However, any large gains with prices remains in 2018 is in doubt. On Thursday, the IEA report noted concerns with non OPEC, like U.S. shale, production. The report said that “it is this current outlook that might act as the ceiling for aspirations of higher oil prices.”
While the IEA was a tad but happy by the actions of OPEC, they noted that it will take even more discipline to see gains with prices hold.
Since June, the global benchmark for oil Brent Crud, has risen about 25 percent. It is fair that trader will have concerns that the price gains will keep up with momentum till the end of the year or into next year.
