WTI is trying to put an end to two days of consecutive declines, currently trading at $44 per barrel.
Key factors at play in Crude market –
- Oil price has gained ignoring Doha talks failure among major global producers to freeze production but got spooked by April production number from OPEC, which showed Cartel’s production reached 33.2 million barrels per day, biggest since 1989.
- Iran production saw sharp increase by 484,000 barrels per day.
- Saudi Prince Mohammad bin Salman, who is Kingdom’s new strongman has laid out a plan to diversify Saudi Arabia from oil. Plan is named Saudi Vision 2030. It will increase non-oil revenue to Real 1 trillion by 2030 from current 163 billion.
- China’s stimulus and commodity frenzy might also be providing some support to oil.
- American Petroleum Institute’s (API) weekly report showed inventory decline by 1.265 million barrels.
Today’s inventory report from US Energy Information Administration (EIA), to be released at 14:30 GMT.
Chart courtesy investing.com
Trade idea –
- WTI seems to have some juice left still, despite last two days drop and bulls may try to regain once more after Dollar weakens.
The material has been provided by InstaForex Company – www.instaforex.com