Oil prices decline following a two-week high due to the fears of US supply

Oil Prices: Weekly Analysis for UK Forex Trading

With sparking renewed fears of US oversupply, oil prices decline in the European market on Thursday after touching a two-week high earlier in today’s session; especially after the oil stock reached a new high and production of US oil shale was accelerated. However, the decline is still limited due to the suspension of Libyan supply and OPEC’s compliance with the oil production cut agreement.

At 09:30 GMT, US crude oil reached USD 49.40 per barrel from USD 49.61 recorded at the beginning of trading session. It hit its highs USD 49.73 since 16 March this year and its lows USD 49.29.

Brent oil decreased to USD 52.30 per barrel from USD 52.50 which was recorded at the beginning of the session. It hit its highs USD 52.67 since 10 March and its lows USD 52.19.

Crude oil prices “May Supply” ended yesterday at 2.4% high. Brent contracts “May Contracts” increased by 2.2% for the second consecutive day due to the suspension of Libyan supplies and possibility of extending the agreement of world production cut to the end of this year.

The US Energy Information Administration announced yesterday that the stock of crude oil increased by 0.9 million per barrel for the week ended on 24 March, Oil prices- UK Forex Tradingwhich is less than the expectations which indicate the increase would be 1.2 million barrels.

According to data, total amount of stock became 565 million barrels which is the highest level since the collection of governmental data in 1982. This is a negative sign of levels of demand in the largest consumer of oil in the world.

Oil shale production increased by 10 thousand barrel for the week ended on 24 March reached its sixth consecutive week high. The total amount of production became 9.14 million barrels a day, which is the highest level of production since January 2016.

Libyan production is still lower by more than 200 thousand barrels a day as the supply was suspended in Al Sharara and Al Wafaa Oilfields due to armed conflict between Libyan groups.

According to initial data from oil markets, the level of OPEC producers’ compliance with the world production cut agreement increased to 95% in March after it was 94% in February.

Russian Minister of Energy Alexander Novak said his country was willing to reduce the production as stipulated in the world production cut agreement entered into with OPEC by the end of next month.

Novak confirmed that the level of reduced production reached 200 thousand barrel per day in March and that Russia would by the end of next April reduce to the Russian share “300 thousand barrel a day” set forth in the agreement entered into with OPEC.

So to take advantage of  crude oil trading today, please check and compare the best UK forex trading brokers.

Recommended UK Forex Trading Brokers to trade Oil EURUSD

AVATrade

  • Up to 400:1 Leverage
  • $100 Minimum Deposit
  • Spreads from 0.9 pips
  • Free Demo Account
  • Excellent Customer Service
  • Regulated Firm in EU, AU, South Africa and Japan
100% Bonus up tp $10,000.
Visit Now

AvaTrade is a award-winning broker with over 20,000 customers from around world and $60 billion per month in trading volume.  Read Avatrade UK review.

Markets.com

  • Safe Trading with a Regulated Broker
  • £25 Free No Deposit Required ( T&C apply )
  • Minimum Deposit only $100
  • Free £100,000 demo account
  • Free e-book, personal training and online webinars
  • Over 2,000 Assets to Trade
  • Low Spreads from 2 pips
  • Islamic accounts
£25 Free Not Deposit Required ( T&C apply )
Visit Now

Markets.comis one of largest forex brokers in Europe. It’s fully authorised and regulated by CySEC and FCA registered. Read Markets.com UK review.

Mohammed Abdelkhalik

Mohammed Abdelkhalik

Professional Trader and Analyst at TradingBroker.co.uk
Professional Trader and Analyst, economist in Financial and Forex market  since 2004.holds an MBA from the American University in Egypt. Mohammed works as an economic writer and technical & fundamental analyst for many international Forex & Binary Options trading companies in both English and Arabic on a daily basis.
Mohammed Abdelkhalik

Leave a Comment

About Us - Sitemap - Contact Us - Disclaimer- Terms & Conditions - Cookies Policy-
© Copyright 2013-2017. All Rights Reserved. TradingBroker.co.uk - Top UK Forex Trading & CFD Brokers -
tradingbroker.co.uk is owned and operated by Clicking Media Ltd ( company registered in England and Wales, UK )
DMCA.com Protection Status
Use of this site constitutes acceptance of our Disclaimer

Risk Warning: Online trading always holds an element of risk a it's not recommended for all investors or traders. Before deciding to trade you should evaluate your investment goals, your experience and risk propensity. You need to know there is a chance that you can lost some or all of your initial investment therefore you should avoid to invest money that you cannot afford to lose. In case of any doubts we recommend to seek advice from an independent financial advisor. ( check website www.fca.org.uk ) Trade at your own risk.
Disclaimer: The information contained within Tradingbroker.co.uk is only provided as general market commentary, and it’s for general information and educational purposes only, and it’s not intended to provide financial advice, nor is it an offer or solicitation of any kind to buy or sell any investment products
TradingBroker.co.uk has financial relationships with some of the products and services mentioned on this web site, and may be compensated if consumers choose to click these links in our content and ultimately sign up for them. For more information please visit our disclaimer web page Read Full Disclaimer