December 27, 2024

Crude oil prices peaked on the denial of OPEC to increase output

LQDFX Forex news blog: Crude oil prices peaked on the denial of OPEC to increase output

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Crude oil prices climbed to a four-year peak on Tuesday, boosted by the forthcoming U.S. sanctions on Iranian crude exports. OPEC+ (Russia) decided not to increase output despite U.S. President Trump’s provocation to “get prices down now!”.

This was probably was rather a disincentive. The US administration puts pressure on governments and companies around the world to follow their line and stop their purchases.

Brent crude futures increased by 61 cents a barrel, above 80$ per barrel. U.S. crude futures gained 30 cents from their last close.

The oil price is on the track for its fifth consecutive quarterly increase, the longest extension of gains since early 2007. Back then, a six-quarter rally led to a record high of $147.50 a barrel.

Experts foresee that may exceed the $100 per barrel by the end of this year or by early 2019 as sanctions against Iran loom.

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Forex Market – Crude Oil soars

The Dollar remained steady ahead of Fed two-day policy meeting to decide on interest hike.

The Euro edged higher 0.2% despite a European Central Bank official playing down its president Mario Draghi’s comments. The single currency hit a 3-1/2 month high on Monday.

The Sterling rose for a second day 0.25% as traders’ risk sentiment improved.

Oil prices soared at 4-year high. Brent crude futures increased by 61 cents a barrel, above 80$ per barrel. U.S. crude futures gained 30 cents from their last close.

Sources: Reuters, CNN money, BBC

PLEASE NOTE The information above is not investment advice.