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Crude Trades in Range, Still Heads to Weekly Losses

February 8, 2019 at 18:59 by Vladimir Vyun

Crude oil was trading in a tight range today, with West Texas Intermediate crude swinging between gains and losses, and the Brent grade rising a bit. Both grades were heading to weekly losses, though.

The news that the leaders of the United States and China will not meet before the March 2 deadline for a trade deal resulted in risk aversion on markets, hurting risk-sensitive assets. Signs of slowing economic growth across the world were also harming growth-related commodities.

While the oil production cuts by the Organization of Petroleum Exporting Countries and several non-OPEC countries, including Russia, were supporting crude, there was a push against the measures aimed to increase oil prices. US politicians are pushing the bill targeting the OPEC cuts. Meanwhile, Reuters reported that Igor Sechin, head of Russian oil giant Rosneft and one of Vladimir Putin’s closest allies, wrote a letter to the Russian President, criticizing Russia’s involvement in the production cuts.

Baker Hughes released its oil rig count, showing that US oil firms increased the number of rigs by 7 this week.

March contract for delivery of WTI crude oil was little changed at $52.6 per barrel as of 18:33 GMT on NYMEX today. At the same time, Brent crude for delivery in April advanced 0.41% to $61.88 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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