Price of Crude Oil Continues To Suffer Even With Supporting Policies
By Anatol Thomas
The price of crude oil showed a slight rise, but the gains weren’t as expected. The oversupply that has saturated the market has started to reduce, but the supply issues before the OPEC deal to cut down production, still linger in the market. The inventory flow data from DOE came with supporting news, as the stockpile decreased for the first time this year.
The OPEC’s efforts to cut down production were welcomed all over the world and it has raised hopes that the oil prices would increase in the upcoming months. The prices showed a positive growth by reaching beyond $50 per barrel. However, the price fell down due to increased US Shale oil production. The new inventory flow data and FOMC’s decision about interest rates are supportive for oil prices.
Experts predict that there is an underlying weakness in the oil market, which stops the crude oil from gaining, even with the supportive news. Currently, the crude oil prices hover over the $49 per barrel price point. Initially, support was at 47.22, but the daily close back was at 49.11.
Gold futures, on the other hand, enjoyed a rebound as the Federal Reserve proposed the much-expected interest rate hike. However, there is no clear information on a tight monetary policy, in the upcoming months. The 2018 budget to be submitted by President Donald Trump is not expected to create a lot of change in the gold prices. The new budget will have very minimal impact on the gold futures according to economists.
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