Helen Rush | Aug 23, 2018 10:59AM ET
Crude oil prices enjoyed an impressive rally yesterday, with Brent rose most in two month. The price has edged above the $75 figure, but struggles to stay above this level on Thursday. The corrective moves look limited so far, but the retreat could deepen in the short term.
The bullish EIA report served as a catalyst for buyers as the report showed that US stockpiles declined by 5.8 million barrels last week, much more than the 1.8 drain expected. The additional buying interest came from the news that a member of International Group said the US sanctions have severely compromised its relations with Iran. Market participants took this message as another sign of the potential risks for global supply.
As the dust has settled after a short-covering rally, Brent could proceed with its bearish correction, especially if the greenback continues to regain ground across the board. Traders could opt to exit longs in the oil market ahead of Powell speech due tomorrow as the Fed Governor may express a hawkish tone and fuel dollar rally.
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.