CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
☰
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
✖

Oil prices up ahead US oil supply data

Article By: ,  Financial Analyst
May 29, 2015 3:36 PM

Oil prices rose in today as investors await key US oil supply data due later today. The West Texas Intermediate futures for July were trading up 0.3 per cent at $57.67 (£37.71) a barrel on the New York Mercantile Exchange.

Data by the US Energy Information Administration is due later, and markets expect weekly supplies to have decreased by 1.1 million barrels, according to analysts polled by The Wall Street Journal.

The newspaper reports that uncertainty surrounding nuclear negotiations with Iran is fuelling bullish sentiment as an expected increase in the country’s oil exports hinges on the outcome of the talks. 

Investors are also awaiting a meeting by the Organization of the Petroleum Exporting Countries (OPEC) in Vienna on June 5. The group is expected to maintain its production target despite falling prices and the global oversupply.

Oil producers pump two million barrels per day in excess

The International Energy Agency say big oil producers are pumping at least two million barrels per day (bpd) more than required. World oil stocks are rising at 1.95 million bpd this quarter and will continue to build until at least the end of 2016.

After collapsing last year, oil prices have rallied strongly since January on ongoing concerns over disruption to supplies from the Middle East. One of the defining factors behind the first quarter rise in oil has been a slowdown in US shale oil production and the conflict in Yemen.

But now analysts say the rebound may be temporary, and could be about to correct.

Oil prices have been tumbling since the summer of 2014, dropping below $45 a barrel at the end of 2014, due to a weakening demand in industrialised countries following the financial crisis.

The stagnating price of oil is set to continue in the near future, according to Saudi Arabia's representative at the Organization of Petroleum Exporting Countries (Opec).

Speaking at an energy conference in Riyadh in March, Mohammed al-Madi, Saudi's Opec governor, explained that it was unlikely oil prices would be able to return to the record levels seen in previous years. Mr Madi said that reaching $100 to $120 a barrel again anytime soon would be "difficult".

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. CFD and Forex Trading are leveraged products and your capital is at risk. They may not be suitable for everyone. Please ensure you fully understand the risks involved by reading our full risk warning.

City Index is a trading name of StoneX Financial Ltd. Head and Registered Office: 1st Floor, Moor House, 120 London Wall, London, EC2Y 5ET. StoneX Financial Ltd is a company registered in England and Wales, number: 05616586. Authorised and regulated by the Financial Conduct Authority. FCA Register Number: 446717.

City Index is a trademark of StoneX Financial Ltd.

The information on this website is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement.

© City Index 2024