WTI oil prices fell below the $62 level in early Thursday trading, extending the downward momentum that began in the previous session. The primary driver behind this morning’s losses is the possibility of oversupply in the market. This sentiment was heightened by comments from President Trump earlier on Thursday, suggesting that a deal with Iran concerning the country’s nuclear programme is close. If confirmed, such an agreement could lift sanctions on Tehran’s oil exports, paving the way for its re-entry into global markets. The latest US crude inventory data added further pressure to prices, significantly exceeding analysts’ expectations. A build-up of 3.5 million barrels was reported over the past week, bringing total US stockpiles to an estimated 442 million. In this context, with supply expectations outpacing demand, oil prices may remain under pressure in the near term.
Ricardo Evangelista – Director, ActivTrades
Source: ActivTrader
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