Crude Prices Fall, Rigs Increase to Highs of 844

*Your capital is at risk

On Friday crude oil fell as U.S. oil rigs continued to rise to its highest level since March 2015 from 10 to 844 rigs.

Crude futures for June delivery on the New York Mercantile Exchange settled at $70.70 a barrel, falling 66 cents.

Brent on London’s Intercontinental Exchange was trading at $77.05 a barrel falling 0.54 percent.

Increase in U.S. Oil Rigs

The increase in U.S. Oil rigs has raised sentiment that there will be an additional ramp up in U.S. output after data released showed that there was as an increase in domestic output which had climbed to an additional 84,000 barrels per day making a total of 10.7 million barrels per day.

U.S. Iran Nuclear Deal

Traders have raised bets that there will be a fall in global crude supplies, after the U.S. decided to pull out of the nuclear deal with Iran on Tuesday.

Commencement of Sanctions on Nov.5

The U.S. has imposed fresh sanctions on countries that import crude oil from Iran. The Treasury Department said that if the countries were willing to make cuts over a six month period to their imports they would be granted relief.

Goldman Sachs said that they believe that the cuts of 250,000 barrels per day over a six months period could support prices of $6.50 a barrel if other OPEC members are on board.

Heightened Tensions in Middle East

The heightened tensions in the Middle East between Israel and Iran grew following the missile attack on Israel by Iran earlier in the week. Israel responded hitting Iranian bases in Syria putting oil prices at a premium.

According to analyst Phil Flynn at Price Futures Group who said that with the increase in demand and the big drops in U.S. oil inventory together with the tensions in the Middle East, there is support in oil prices.

With the mounting oil supply concerns and all the geopolitical escalating fears (which are here to stay) for a while at least you can take advantage of Plus500 forex and CFDs brokerage services.

You will discover ……

You can enjoy all the benefits when trading CFD shares, Forex pairs, World leading indices, ETFs, commodities from wheat, gold oil and many more, all grouped together under agriculture, energy and metals.

That is not all you have over 2,000 assets to choose from including the most popular cryptocurrencies.

The best part is…….

CFDs (contract with a difference) means you will be able to enjoy all the benefits of having an interest in the price movement, without have to physically own it.

Let’s face it, when you consider all the pros like:

• Very easy to use and stable platform, with all the added extra tools & financial graphs
• Attractive spreads
• Zero commissions
• Fully regulated by FCA, CySEC and ASIC
• Outstanding support
• Demo account (free)
• Tutorials

You can actually use it to your advantage when trading oil amid the mounting supply concerns after the U.S. left the nuclear deal in Iran.

Visit Plus500 Site

*Your capital is at risk

Interested to Register with Other Recommended Brokers? Click Here!







Leave a Reply

You must be logged in to post a comment.