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.