WTI pierces $21.00 as US fuels hopes of supply disturbance/control
- US President Trump threatens Iran on anticipation of attacks in Iraq, will also meet oil industry leaders.
- The US leader expects Russia-Saudi Arabia “to work it out.”
- Inventories keep coming in high due to the coronavirus-led lockdowns, Saudi Arabia continues to pump the markets.
While extending its recovery moves from the previous day, WTI clears the $21.00 mark, with a high of $21.20, while taking rounds to $21.10 during Thursday’s Asian session. Comments from the US President Donald Trump and the White House Security Adviser could be cited as the latest catalysts for oil’s uptick.
Trump warns Iran, US will work with the world’s largest oil producers…
US President Trump recently tweeted that the administration has information that Iran or its proxies are planning a sneak attack on US troops and/or assets in Iraq. This pushed the Republican leader to threaten to pay a heavy price if Iran conducts a 'sneak attack'.
Elsewhere, the White House National Security Adviser Robert O'Brien mentioned, via Reuters, that the US will work with the world’s largest oil producers to address volatility.
It’s worth mentioning that the US President Trump will meet major oil companies on Friday to discuss the potential ways to help the oil industry hammered by slumping energy demand during the coronavirus outbreak and a price war between Saudi Arabia and Russia, as per Reuters.
In a separate piece, Reuters also said that the US Energy Department, on Wednesday, urged Saudi Arabia and Russia to calm oil markets after the kingdom’s crude supply rose to a record of more than 12 million barrels per day.
Given the latest catalyst signaling efforts to placate oil producers, while also suggesting disturbances in the supply on the US-Iran tension, the energy benchmark may take an intermediate halt from the coronavirus-led downside.
Technical analysis
Although the recent uptick cleared two-week-old falling trend line, oil prices are way lower than the previous week’s high surrounding $25.00 that holds the key for further recovery. On the downside, a $20.00 round-figure acts as the trigger for fresh declines.
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
