Oil price rally takes a breather after Monday’s big gains

Oil price rally takes a breather after Monday’s big gains - MarketPulseMarketPulse

image

Home/Commodities/In The News

Share 0

Oil futures retreated on Tuesday, with crude prices pausing after a sharp run-up in the previous session that had been partly fueled by reports that Yemen’s Houthi rebels launched a drone attack over the weekend on one of Saudi Arabia’s largest oil fields.

West Texas Intermediate crude for October delivery CLV19, -0.07% lost 25 cents, or 0.5%, to $55.90 a barrel, after the most-active contract gained 2.4% on Monday. October Brent BRNV19, -0.05% edged 20 cents, or 0.3%, lower at $59.64 a barrel, following a 1.9% gain in the previous session.

Oil prices have mostly risen over the past two weeks as expectations that central banks across the globe will combat signs of recession with greater stimulus that could help stimulate appetite for crude and other energy assets.

“Global oil demand forecasts are likely to see upgrades as central banks and governments become more aggressive in delivering stimulus,” wrote Edward Moya, senior market analyst at Oanda, in a daily research note.

“With expectations for this week’s inventory data to post a small draw, we could see oil remain focused on geopolitical tensions in the Middle East and updates on Germany’s stimulus plan and further cues from the Fed,” he wrote.

image

Investors are awaiting inventory data from the American Petroleum Institute later Tuesday at 4:30 p.m. Eastern Time, which will be followed by the closely watched U.S. Energy Information Administration report at 10:30 a.m on Wednesday.

In the previous session crude markets bucked higher after the Houthis on Saturday said they targeted the Shaybah oil field, which is owned by Saudi Arabian Oil Co., or Aramco, and holds about 14 billion barrels of oil, according to The Wall Street Journal. Aramco said a fire was extinguished at a natural-gas processing plant and that there were no injuries and no disruptions to production at the field, which produces around 1 million barrels of oil a day.

MarketWatch

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Ed Moya

With more than 20 years’ trading experience, Ed Moya is a market analyst with OANDA, producing up-to-the-minute fundamental analysis of geo-political events and monetary policies in the US, Europe, the Middle East and North Africa. Over the course of his career, he has worked with some of the world’s leading forex brokerages and research departments including Global Forex Trading, FX Solutions and Trading Advantage. Most recently he worked with TradeTheNews.com, where he provided market analysis on economic data and corporate news. Based in New York, Ed is a regular guest on several major financial television networks including BNN, CNBC, Fox Business, and Bloomberg. He is often quoted in leading print and online publications such as the Wall Street Journal and the Washington Post. He holds a BA in Economics from Rutgers University. Follow Ed on Twitter @edjmoya ‏

Ed Moya

Latest posts by Ed Moya (see all)

Original author: Ed Moya
ANNOUNCEMENTS: Certification Examination Results f...
National Debt Helpline (clone of FCA authorised fi...
 

Comments

No comments made yet. Be the first to submit a comment
Already Registered? Login Here
Guest
Tuesday, 24 September 2019
 
     
 

Latest Spot Rate

 
Wait a minute, while we are rendering the calendar
How It Works | About | Contact | Privacy Policy | Forex Marketing
© 2009 - 2019 Forex Forum. All Rights Reserved. Risk Disclaimer: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Past performance is not indicative of future results. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.