WTI Lower After Trump Calls Out OPEC Hints at Using Oil Reserves

Global benchmark crude futures climbed Tuesday, holding ground at four-year highs on expectations for tighter international supplies of oil.

U.S. crude prices, however, eased back from the session’s best levels as President Donald Trump at the United Nations assembly reiterated his recent calls on the Organization of the Petroleum Exporting Countries to lower oil prices and said the U.S. would take action if it didn’t.

West Texas Intermediate graph

Trump’s U.N. address partly explains the move in WTI, said Alfonso Esparza, senior market analyst at Oanda, pointing out this line in the president’s speech: “The United States stands ready to export our abundant, affordable supply of oil, clean coal and natural gas.”

“Trump has now escalated the rhetoric and if OPEC and other major producers will not increase supply, the U.S. is ready to step up,” said Esparza. “Trump gave no details, but he has suggested in the past that he would be willing to tap into the [Strategic Petroleum Reserve] to keep oil prices low.”

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