- Trumps‘s tweet criticizing OPEC cuts sends crude oil lower but then black gold recovers losses quickly.
- Longer-term fundamentals for oil are still well in place for oil.
Crude oil WTI is trading at around $68.38 per barrel virtually unchanged as the commodity traded mainly sideways on the last day of the week but still at levels not seen since late 2014.
Earlier in the day, Trump tweeted that he was not happy with current oil prices. “Looks like OPEC is at it again. With record amounts of Oil all over the place, including the fully loaded ships at sea, Oil prices are artificially Very High! No good and will not be accepted!” says Trump by Tweeter. Oil ticked lower on the tweet but then prices quickly recovered.
The OPEC and Russia decided to cut production in January 2017 in order to support the prices of oil.
Oil prices are higher for many reasons: diplomatic tensions with Russia, the Iranian deal that needs to be renewed on May 12, tightening supply led by OPEC and Russia, a global demand for oil which is steady and a decreasing Venezuelan oil production.
Khalid al-Falih, Saudi oil minister, said that OPEC has no intention to decrease the cuts for the time being and that it would be premature to discuss it at the next meeting in June. He added that the global economy could put up with higher prices and that oil demand would persist regardless of higher prices.
Crude oil WTI: levels to watch
The trend is bullish. Support is seen at 67.76 swing high and at 67.00 figure, while resistance is seen at 68.91 supply level and 69.56 high of the year.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. 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.
Recommended content
Editors’ Picks
AUD/USD jumps above 0.6500 after hot Australian CPI data
AUD/USD extended gains and recaptured 0.6500 in Asian trading, following the release of hotter-than-expected Australian inflation data. The Australian CPI rose 1% in QoQ in Q1 against 0.8% forecast, providing extra legs to the Australian Dollar upside.
EUR/USD holds above 1.0700 on weaker US Dollar, upbeat Eurozone PMI
EUR/USD holds above the 1.0700 psychological barrier during the early Asian session on Wednesday. The weaker-than-expected US PMI data for April drags the Greenback lower and creates a tailwind for the pair.
Gold price cautious despite weaker US Dollar and falling US yields
Gold retreats modestly after failing to sustain gains despite fall in US Treasury yields, weaker US Dollar. XAU/USD struggles to capitalize following release of weaker-than-expected S&P Global PMIs, fueling speculation about potential Fed rate cuts.
Ethereum ETF issuers not giving up fight, expert says as Grayscale files S3 prospectus
Ethereum exchange-traded funds theme gained steam after the landmark approval of multiple BTC ETFs in January. However, the campaign for approval of this investment alternative continues, with evidence of ongoing back and forth between prospective issuers and the US SEC.
US versus the Eurozone: Inflation divergence causes monetary desynchronization
Historically there is a very close correlation between changes in US Treasury yields and German Bund yields. This is relevant at the current juncture, considering that the recent hawkish twist in the tone of the Fed might continue to push US long-term interest rates higher and put upward pressure on bond yields in the Eurozone.