With the attention in other markets, crude oil paused for breath last night. Nevertheless, both Brent and WTI spot managed respectable rallies of around 1.0%. Saudi Arabian production reduction appeared to be ahead of forecast and gave the oil a boost helped along by tensions in Europe, the Middle East and Asia.

 

Tonight we have the U.S. Crude Inventory figures which would normally be the week’s highlight. However, the geopolitical situation ahead of a long weekend will take precedence. We expect crude to trade off headlines rather than fundamentals in the short term.

 

Nonetheless, both Brent and WTI spot’s price action continue to look very constructive. Brent spot is trading at 56.25 this morning within shouting distance of the 2017 high at 57.00. WTI similarly trades at 53.35 this morning, bubbling below its 2017 high at 53.60.

 

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Jeffrey Halley

Jeffrey Halley

Senior Currency Analyst
Based in Singapore, Jeffrey has over 25 years experience in the financial markets, having traded currencies, options, precious metals and futures. Jeffrey started his career at Barclays Bank in New Zealand. However he has spent most of it in London and Asia.Jeffrey focuses on the Asia time zone across asset classes. A regular commentator on business news TV and Radio, he is originally from New Zealand and holds an MBA from Cass Business School, London.