Brent Crude Oil Price Ignores Trump, Reaches Highest Since 2014
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Oil price, news and analysis:
- The price of Brent crude oil could continue its advance as traders ignore US President Donald Trump’s persistent calls for producers to raise their output.
- Already at its highest since November 2014, further gains are possible
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Oil prices turn a blind eye to Trump
The price of Brent crude oil has reached its highest since November 2014 and could strengthen further amid concerns that the world’s major oil producers would struggle to increase output, as called for repeatedly by US President Donald Trump, even if they wanted to.
On September 20, Trump tweeted: “We protect the countries of the Middle East, they would not be safe for very long without us, and yet they continue to push for higher and higher oil prices! We will remember. The OPEC monopoly must get prices down now!”
Then, yesterday he told the United Nations General Assembly that the Organization of the Petroleum Exporting Countries is “ripping off the rest of the world” by pushing up prices.
However, the advance in the price that began in January 2016 could extend further on doubts that OPEC can make up for the loss of exports from Iran due to Trump’s sanctions on the country.
Brent Crude Oil Price Chart, Weekly Timeframe (January 2014 – September, 2018)
A possible fall in USD after today’s meeting of the Federal Open Market Committee would add to the upward pressure on crude prices despite news of rising US oil stockpiles. The American Petroleum Institute (API) yesterday reported a build of 2.903 million barrels in US crude oil inventories for the week ending September 21, compared to analysts’ expectations of a draw of 1.279 million barrels.
This session, ahead of the expected hike in US interest rates, oil traders will be waiting to see whether the official data from the US Department of Energy confirm the API figures.
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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.