Crude oil trades higher on stock drop and Iran
Head of Commodity Strategy, Saxo Bank Group
Summary: WTI crude oil trades up by 2% ahead of the “Weekly Petroleum Status Report” from the US Energy Information Administration.
Also, today Federal Reserve Chairman Jerome Powell will begin his two-day testimony to Congress on the state of the US economy. The text will be released at 12:30 GMT and his remarks, given the current global rate debate, will be watched closely across all markets, including the energy sector.
Looking at the WTI chart below, we find the early July sell-off has been reversed with the price once taking aim at the key psychological level around $60/b. While geopolitical risks and lower US stocks may provide support the challenging economic outlook may still prevent the market from mounting a break at this time.
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