Oil hit a 2019 high above $69 a barrel on Tuesday. Traders presumed that more sanctions against Iran and further Venezuelan disruptions could deepen an OPEC-led supply cut.
Oil markets became less worried that demand may slow as Brent oil neared $70 a barrel for the first time since November.
The United States is considering more sanctions against Iran, whose oil exports have been halved by existing measures. A key crude terminal in Venezuela, also under U.S. sanctions, has halted operations again. Further supply losses from Iran and Venezuela could widen an OPEC-led production cut that took effect in January to prevent a price-sapping rise in inventories. OPEC supply hit a four-month low in March. The OPEC top exporter Saudi Arabia cut more than it had agreed to. Also many involuntary declines took place.
Brent crude touched $69.50, the highest since mid-November, and at 1153 GMT was down 2 cents at $68.99 a barrel. U.S. crude was up 43 cents at $62.02, rising above $62 for the first time since early November.
This week’s reports on U.S. supplies are expected to show crude inventories fell. Oil’s pattern on the price charts could lead to further gains.
Data showing a rebound in U.S. factory activity in March and a return to growth in Chinese manufacturing eased concern that an economic slowdown could weaken oil demand.
START TRADINGForex – 2019 high for oil – sterling around $1.3
The pound fell on Tuesday as British Prime Minister Theresa May came under pressure to resolve the Brexit crisis by either calling an election or a no-deal Brexit. Europe was led by a near 1 percent jump in London’s FTSE 100 which was lifted by a 0.6 percent weaker pound.
However, the modest drop in sterling suggests that many investors still see a so-called “soft Brexit” as the most likely outcome. The currency is trading around $1.3, its value for much of January. Sterling extended losses to touch $1.3025, down 0.6% on the day. Against the euro, it dropped 0.5% to 85.92 pence.
The dollar index which measures the U.S. currency against a basket of rival currencies, rose as much as 0.3% to 97.430. This left the euro at $1.12, the yen at 111.37 and the pound worth $1.3030. The euro fell to a three-and-a-half week low and stood precariously near its weakest since June 2017 on Tuesday. Investors seized on relatively strong data out of the United States to buy more dollars.
The euro weakened as much as 0.2% to $1.1190, slightly above the $1.1176 level reached last month – the weakest since June 2017.
Gold ticked down in the industrial and precious metals markets.
Sources: Reuters, Investing, CNN money
PLEASE NOTE The information above is not investment advice.