Oil Rises Awaiting Weekly US Crude Inventory Data

Oil futures erased earlier losses as investors await U.S. supply data after news reports said Iran’s oil minister indicated the Organization of the Petroleum Exporting Countries were considering deeper production cuts.

On the New York Mercantile Exchange, light, sweet crude futures for delivery in August US:CLN7  rose 22 cents, or 0.5%, to $43.73 a barrel.

On Tuesday, West Texas Intermediate slid 2.2% to close at the lowest level since September 16, meaning the commodity has fallen at least 20% from 2017’s highest close, logged in February. A 20% decline for an asset price is considered a bear market.

Meanwhile, Brent futures for August LCOQ7, -0.13% also turned higher rising 15 cents, or 0.3%, to $46.17 a barrel.

Iranian oil minister Bijan Zanganeh on Wednesday said OPEC members were considering further production cuts but should wait until the effect of the current output cuts is clear, Reuters reported.

Prices didn’t move after Saudi Arabia’s state news energy said King Salman has named his son as crown prince, replacing Muhammad bin Nayef. Mohammed bin Salman had been deputy crown prince.

via MarketWatch

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza