Crude oil continues lower

Ole Hansen

Head of Commodity Strategy

Crude oil continues to trade lower despite the improved sentiment seen across other markets where stocks have recovered and the dollar has weakened. The greenback's decline was sparked by renewed Brexit hopes which lifted sterling, while the CNY has retraced from the important 7-per- dollar level after China’s leadership signalled the roll-out of further stimulus measures as economic data continues to disappoint.

Oil, nevertheless, trades lower with WTI testing $65/barrel while Brent has broken below the important $75/b level to challenge its 200-day moving average at $74/b. The market has reacted negatively to yesterday's news from the EIA that US production in August jumped by 3.8% to reach a fresh record of 11.346 million barrels/day. US oil production has now risen an incredible 2.1 million barrels/day year-on-year, in the process surpassing Russia which produced a post-Soviet high of 11.2 million barrels/day in August.  

If that was not enough, Reuters released its monthly Opec production survey which showed the bloc's output rising to its highest since 2016 despite Iran sanctions. Staying with Iran, reports speak of US waivers potentially being granted to India and South Korea, a move that would reduce the impact of the US sanctions on Iran's ability to produce and export crude oil.
Source: Saxo Bank

Saxo Bank A/S - Representative Office
Boulevard Plaza - Tower 1
30th floor, office 3002
Dubai Downtown, Burj Khalifa area
Dubai
UAE

UAE

Trade responsibly
All trading carries risk. Read more. To help you understand the risks involved we have put together a series of Key Information Documents (KIDs) highlighting the risks and rewards related to each product. Read more

Saxo Bank A/S is licensed by the Danish Financial Supervisory Authority and operates in the UAE under a representative office license issued by the Central bank of the UAE.

The content and material made available on this website and the linked sites are provided by Saxo Bank A/S. It is the sole responsibility of the recipient to ascertain the terms of and comply with any local laws or regulation to which they are subject.

The UAE Representative Office of Saxo Bank A/S markets the Saxo Bank A/S trading platform and the products offered by Saxo Bank A/S.