OIL
Brent oil prices are steady as the European trading session begins, stabilising after three consecutive sessions of gains that saw prices climb roughly 7%. These gains were fueled by expectations of interest rate cuts in the US, which became the dominant market narrative after the Federal Reserve Chairman signalled an easing off of the monetary policy brakes.
Jerome Powell hinted at a rate cut in September and left the door open for additional cuts before the year's end, bolstering the outlook for economic growth and, consequently, oil demand. Meanwhile, in the Middle East, tensions remain high between Israel, Iran, and its proxies, raising the threat of an all-out war that could severely disrupt the global supply of crude.
Adding to supply concerns, the potential closure of oil fields in Libya could, if confirmed, remove more than a million barrels per day from an already tight market. Against this backdrop, with pressures mounting from both the supply and demand sides, there may be room for further gains in oil prices.
Ricardo Evangelista – Senior Analyst, ActivTrades
Source: ActivTrader
The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and as such is to be considered to be a marketing communication.
All information has been prepared by ActivTrades (“AT”). The information does not contain a record of AT’s prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not a reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acting on the information provided does so at their own risk.