Oil Supply Concerns

by Sep 20, 2019Market Reviews

Supply concerns resurfacing causes oil prices higher

 After a sharp rise on Monday, crude oil prices experienced a deep recovery on Tuesday and Wednesday, and West Texas Intermediate (WTI) fell by nearly 6% during this period. However, on Thursday (September 19), International oil prices were moderately higher as the market renewed concerns over the impact of Saudi crude oil facilities on supply performance. US WTI crude oil futures prices hit a high of $59.48 per barrel, while Brent crude futures hit a high of $65.56 per barrel.

Saudi crude oil production fell more than half after the attack, which gave oil prices strong support earlier. However, due to the faster-than-expected recovery of Saudi production, the oil price subsequently retreated some of the gains. However, in the daytime, supply pressures still exist and may continue to bring good returns to oil prices.

At the beginning of this week, Saudi Arabia stated that crude oil production would return to normal levels within two to three weeks, which means that it will return to the level of 10 million barrels per day. Despite this, some traders and analysts have expressed doubts about Saudi Arabia’s expectations being too optimistic. The uncertainty of the resumption process is believed to provide some support for oil prices.

On the other hand, Iran’s Supreme Leader Ayatollah Ali Khamenei said that the attack on Saudi Aramco showed the United States’ defense system in Saudi Arabia failed. It pointed out that under the pressure of US sanctions, Iran will not negotiate with the United States.

 

 

Related Posts

NZD, AUD Claw Back Up Amid Weakening US Dollar

NZD, AUD Claw Back Up Amid Weakening US Dollar

The New Zealand Dollar is fighting it’s way back up as the country enters it’s first official day of nationwide lockdown. It posted a 0.67% gain for the trading day, up to 0.58390 cents against the US Dollar. Just a week ago the NZD had dropped to 0.56, and looked ready to hit the 55 cent mark, as news broke of Air New Zealand’s layoffs.

read more

Black Bull Group Limited (trading name: BlackBull Markets) is a New Zealand registered and incorporated company (company number: 5463921). We are also registered with the Financial Services Provider Register (number: FSP403326).

Black Bull Group UK Limited is registered in United Kingdom, Company Number - 9556804. Payment clearing services provided by: BlackBull Group UK Limited (Company Number - 9556804) Address - 483 Green Lanes, London, Greater London, United Kingdom, N13 48S

Risk Warning: 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 trade 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 you cannot afford to lose. You should make yourself aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any questions or concerns as to how a loss would affect your lifestyle.

Copyright © 2020 Black Bull Group Limited. All Rights Reserved.

Share This