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Crude Oil Joins Other Risky Assets in a Relief Rally

April 3, 2018 at 17:19 by Vladimir Vyun

Prices for crude oil rose a bit today following the big slump on Monday. Crude joined equities and other assets associated with risk in a rally after the decline caused by fears of a trade war between the United States and China. The commodity also declined due to rising oil production in Russia and prospects for Saudi Arabia cutting prices for its oil exports. Most analysts said that today’s rebound was a relief rally and the commodity should remain under pressure as the negative factors did not just disappear overnight.

Talking about negative factors, growing US oil production remains a main issue for the market, therefore traders tend to watch US supply data intently. The American Petroleum Institute will release its supply report later today, while the Energy Information Administration will release government data on Wednesday. Forecasters predicted that the official report will show an increase of US crude oil inventories in a neighborhood of 1.7 million — 2.0 million barrels last week. The week before, the stockpiles rose by 1.6 million barrels.

Futures for delivery of WTI crude oil in May gained 0.68% to $63.44 per barrel as of 19:09 GMT on NYMEX today. June contract for crude advanced 0.58% to $68.03 per barrel on ICE.

If you have any questions and comments on the commodities today, use the form below to reply.

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