Oil Drops as Geopolitical Anxiety Fades

Oil prices turned sharply lower in thin trading on Monday, as the geopolitical concerns that underpinned last week’s rally faded.

International oil prices had risen towards $70 a barrel in overnight trading, lifted by a drop in drilling activity in the United States and concerns that Washington could reintroduce sanctions against Iran, OPEC’s third biggest oil producer.

West Texas Intermediate graph

Brent crude futures were down 83 cents, or 1.2 percent, at $68.51 per barrel by 9:57 a.m. ET (1357 GMT), slipping further from its 2018 high of $71.28 reached on Jan. 25.

U.S. WTI crude futures fell $1.13, or 1.7 percent, to $63.81 a barrel, after finishing the first quarter up 7.5 percent.

via CNBC

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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