Oil Climbs 1 Percent on Data From EIA

Following the EIA latest report oil climbed around 1 percent on Wednesday, with crude oil inventories falling for the week to August 24 of 2.6 million barrels.

Brent crude oil rose to $76.52, up 57 cents. U.S. crude gained 77 cents at $69.30 a barrel. While there was a surprising drop in U.S. gasoline stocks of 1.5 million barrels.

Crude Buyers Deterred by U.S. Sanctions

The U.S. sanctions on Iranian crude shipments has deterred crude buyers, reducing orders ahead of the Nov. 4 deadline, even though Iran has offered sizeable discounts.

In a note President of Ritterbusch & Associates, Jim Ritterbusch said that the fall in exports is faster than they had expected. He also reportedly said that with the reduction on exports this would mean a tightening of global supply. Iran’s estimated loadings are at 2.06 million barrels per day for August compared to their peak in April of 3.09 million barrels per day.

Director of energy futures at Mizuho, Bob Yawger said that the demand in gasoline has been particularly supportive to the market.

Why does this matter?

Investors and traders are opting for trading CFDs, where they can trade the global commodity markets, which includes oil, natural gas, base metals like gold silver, copper and agricultural commodities.
The great advantage of trading CFDs is that you do not own the actual commodity, instead you trade the price of the commodity by investing a small percentage of the overall value of the trade with your broker.

That’s not all………….

With CFDs trading you can profit if the price falls with short trading.

The best part?

At 24option, traders can choose from over 150 underlying assets of CFDs (contract for difference), comprised of stocks, indices, commodities, currency pairs and cryptocurrencies.
Here’s the deal……………….

Trading CFDs at 24option, you can benefit from the many additional perks that will substantially leverage and boost your trading.

• Get 24/7 trading plus customer support
• A demo account
• No commission fees
• The ability to hedge
• A powerful platform that traders can switch from CFDs to Forex trading from the same screen
• Financial tools and graphs and live news feeds

Production at Lowest Levels in Angola

That’s why of course with the disruptions like in Venezuela and Angola, traders can make profits, going long or short with CFDs.

Venezuela Disruptions

The disruptions in oil output in Venezuela has dropped by half since 2016. According to reports the PDVSA state run oil firm signed a $430 million investment agreement on Tuesday that would see an increase of production of 640,000 barrels per day. Given the instability in the country many analysts doubt if the investment will go through.

Production at Lowest Levels in Angola

Whilst aging infrastructure in Angola and lack of investment continues to limit production and has seen shipments of crude drop to its lowest level since December 2006.
Plans to develop new oil fields in Brazil by Norway’s Equinor with a rise in output of 90,000 bpd would see an increase of between 300,000 and 500,000 leading up to 2030.

Increase in Output Forecast by Non-OPEC Members

Bank of America Merrill Lynch forecast a climb towards the end of the year in spite of risks to disruption from OPEC producers based on an increase of output from non-OPEC members Canada, Brazil and the U.S.

Visit 24option Site

Risk Warning: Trading forex and/or CFDs involves significant risk of loss. CFDs are leveraged products and it is possible to lose more than your initial investment.



We will be happy to hear your thoughts

      Leave a reply