US Crude Oil Price Strength Shows No Sign of Ebbing
Crude oil price, news and analysis:
- US President Donald Trump is calling on other countries to end their imports of crude oil from Iran.
- Meanwhile, US crude oil inventories are falling and the combination could boost the price of crude oil further.
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Trump demands countries end imports of oil from Iran
The price of US crude oil has topped the psychologically important $70 per barrel level and could climb further in the wake of a call by US President Donald Trump for other countries end all their imports of crude oil from Iran by November 4.
Reportedly, Trump does not want any extensions or waivers to the ban, and the price of US crude has risen accordingly despite plans by Saudi Arabia for record crude oil production in July. In response, the US crude price has risen to its highest level for more than a month and the advance looks set to persist.
US crude oil Price Chart, One Hour Timeframe (June 18-27, 2018)
Oil inventories fall
In addition, the American Petroleum Institute (API) has reported a sharp drop of 9.228 million barrels in US crude inventories in the week that ended on June 22 – much more than the 2.572 million barrels fall predicted and the previous week’s 3.016 million barrel decline.
Today, Wednesday, the US Department of Energy is expected to report a drop of three million barrels, a smaller fall than the week before, and a larger draw than that would heap additional upward pressure on prices.
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--- Written by Martin Essex, Analyst and Editor
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.