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Crude Oil Rallies After Saudi Arabia Replaces Energy Minister

September 9, 2019 at 17:35 by Vladimir Vyun

Crude oil rallied today after Saudi Arabia replaced Khalid al-Falih with prince Abdulaziz bin Salman on a post of energy minister. The new minister signaled that he is going to continue to pursue the policy of output cuts to support oil prices. Markets welcomed the appointment as Abdulaziz bin Salman is considered to be good at negotiating production cuts and knowledgeable about markets.

Going forward, traders will watch for reports from the American Petroleum Institute and the Energy Information Administration about US oil inventories. The monetary policy meeting of the European Central Bank on Thursday is likely to have a strong impact on markets. Most market participants expect a stimulus from the ECB. If that is indeed the case, the US dollar is likely to rally, and that should have a negative impact on commodities priced in the US currency.

Futures for delivery of WTI crude oil in October climbed 2.67% to $58.03 per barrel as of 17:28 GMT on NYMEX today. November Brent crude advanced 2.27% to $62.94 per barrel on ICE.

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

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