US Crude Oil Price Strength Shows No Sign of Ebbing

Crude oil price, news and analysis:

US President Donald Trump is calling on other countries to end their imports of crude oil from Iran.

Meanwhile, US crude oil inventories are falling and the combination could boost the price of crude oil further.

Check out the IG Client Sentiment data to help you trade profitably.

Trump demands countries end imports of oil from Iran

The price of US crude oil has topped the psychologically important $70 per barrel level and could climb further in the wake of a call by US President Donald Trump for other countries end all their imports of crude oil from Iran by November 4.

Reportedly, Trump does not want any extensions or waivers to the ban, and the price of US crude has risen accordingly despite plans by Saudi Arabia for record crude oil production in July. In response, the US crude price has risen to its highest level for more than a month and the advance looks set to persist.

US crude oil Price Chart, One Hour Timeframe (June 18-27, 2018)

Chart by IG

Oil inventories fall

In addition, the American Petroleum Institute (API) has reported a sharp drop of 9.228 million barrels in US crude inventories in the week that ended on June 22 – much more than the 2.572 million barrels fall predicted and the previous week’s 3.016 million barrel decline.

Today, Wednesday, the US Department of Energy is expected to report a drop of three million barrels, a smaller fall than the week before, and a larger draw than that would heap additional upward pressure on prices.

Resources to help you trade the forex markets

Whether you are a new or an experienced trader, at DailyFX we have many resources to help you: analytical and educational webinars hosted several times per day, trading guides to help you improve your trading performance, and one specifically for those who are new to forex. You can learn how to trade like an expert by reading our guide to the Traits of Successful Traders.

— Written by Martin Essex, Analyst and Editor

Feel free to contact me via the comments section below, via email at martin.essex@ig.com or on Twitter @MartinSEssex

Leave a Reply

Your email address will not be published. Required fields are marked *