Resisting the steady increase in US oil inventories over the past two weeks, oil prices are losing momentum, as headlines about the year-long trade dispute between the United States and China has prompted investors to divest themselves of risky investments. Oil prices have turned down from 6-months high, with Brent crude trading below 70 (-1.75%), West Texas Intermediate at 60.80 (-1.80%) and finally Shanghai futures at CNY 471 (-2.80%). Yet it seems that despite recent tweet from US president Donald Trump about potential tariffs hike, the situation has not changed. OPEC output cut is still in place while major supply shortages related to Iran, Venezuela, Nigeria or Libya are still in place. It is therefore to consider that positive headlines concerning US – China trade talks should again benefit oil prices.
US EIA crude oil inventories for the week ended 26 April have been pointing to a rise of 9.93 million, its highest level since November 2018 while total production reached a record of 12.3 million bpd.
Currently trading at 60.80, WTI is heading along 61.50 as buying pressures are emerging.
This report has been prepared by AC Markets and is solely been published for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any currency or any other financial instrument. Views expressed in this report may be subject to change without prior notice and may differ or be contrary to opinions expressed by AC Markets personnel at any given time. ACM is under no obligation to update or keep current the information herein, the report should not be regarded by recipients as a substitute for the exercise of their own judgment.