Crude Oil Price Continues to March Higher on Chinese Data, Inventories
Crude oil price, news and analysis:
- Signs that China’s economy is stabilizing and news that US crude oil stockpiles fell unexpectedly are supporting the crude oil price.
- That’s in addition to its recent strength on fighting in Libya and US sanctions on Venezuela and Iran.
Crude oil price buoyant
The price of US crude oil continues to rise as signs that the Chinese economy is stabilizing raise hopes of firm demand from the world’s second-largest economy. In addition, data from the American Petroleum Institute released Tuesday showed crude oil inventories down by 3.1 million barrels in the week to April 12 when an increase of 1.7 million had been expected.
US Crude Oil Price Chart, Daily Timeframe (December 17, 2018 – April 17, 2019)
Chart by IG (You can click on it for a larger image)
This news is adding to the buoyancy of oil prices, which have already risen strongly this year on the current fighting in Libya and US sanctions on two other key producers: Venezuela and Iran. Meanwhile, oil prices have so far shrugged off talk of a potential end to production curbs by the Organization of the Petroleum Exporting Countries and its allies including Russia.
In the immediate future, traders will be waiting to see whether Wednesday’s official data from the US Department of Energy confirm the drop in inventories but, as the chart above shows, there is little sign yet of an end to this year’s advance in 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.