We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Mixed
GBP/USD
Bearish
USD/JPY
Bullish
Gold
Bullish
Oil - US Crude
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Bitcoin
Mixed
More View more
Real Time News
  • With increasing volatility in weather patterns, how might storms, hurricanes, and floods rattle the supply chain for petroleum-based products and impact crude oil prices? Get your market update from @ZabelinDimitri here:https://t.co/O4dgBl47fq https://t.co/eMb7iCfdqS
  • Join analyst @DavidJSong at 5:30 PM ET/10:30 PM GMT for your weekly update on key news trading events. Register here: https://t.co/gBlrRpCc55 https://t.co/1rVzPr6gx4
  • See the DailyFX Fundamental and Technical forecasts for the week ahead on the major currencies, indices and commodities here: https://www.dailyfx.com/forex/fundamental/forecast/weekly/title/2019/12/15/Dow-Pound-and-Aussie-Dollar-Test-Post-Trade-War-Election-Breakouts.html
  • The US-China agreement brings this scene from camp cinema history to mind: https://t.co/WsfoGMZbw1 via @GIPHY https://t.co/h045efj8Em
  • What is the ascending triangle and how can you trade it? Find out here: https://t.co/SyL29jQflv https://t.co/F8415DaNGE
  • The politics of the US and UK may be starkly divided but their grip on the vast, $6.6 trillion global foreign exchange trade seems as tight as ever. Get your market update from @DavidCottleFX here:https://t.co/xTKHOvrIqg https://t.co/z7ogzy00dy
  • What are the Market cycles? How are #currencies impacted in these cycles? How can these cycles impact #forextrading patterns? Find out here: https://t.co/ckr2fUOWqW https://t.co/g7iT8bpi7f
  • What are a few of the common trading mistakes made by traders? Find out from @WVenketas here: https://t.co/d3OFc4yGao #tradingstyle https://t.co/wQ1MAkOb0n
  • The UK population voted the Conservative government back in with a strong majority, giving PM Johnson the backing to push Brexit through. And Sterling (GBP) likes it. Get you $GBPUSD market update from @nickcawley1 here: https://t.co/tjCHWDxoWm https://t.co/Z7Vaadxy5r
  • #Gold prices may fall while the US Dollar gains even as economic policies championed by the Trump administration invite inflation. Get your $gld markets news from @IlyaSpivak here:https://t.co/4lHhHsby56 https://t.co/zF4EyLIRWM
Crude Oil Price Crumbles on Trump Call to OPEC Despite US GDP Beat

Crude Oil Price Crumbles on Trump Call to OPEC Despite US GDP Beat

2019-04-26 16:46:00
Rich Dvorak, Junior Analyst
Share:

CRUDE OIL PRICE – TALKING POINTS:

  • Crude oil took a nosedive to an intraday low of $62.27/bbl in response to news that President Trump is turning up the heat on OPEC to increase oil supply in hopes of driving prices lower
  • The Q1 US GDP report could also be contributing to crude oil price action today seeing that underlying details of the data release painted a mixed picture for economic growth despite the headline number beating expectations by a full percentage point
  • Take a look at this article on How to Trade Crude Oil or check out these Top Crude Oil Facts to expand your trading knowledge
  • Download the DailyFX Q2 Oil Forecast for our comprehensive outlook

Crude oil tanked over 3 percent to its lowest level since April 5 amid renewed criticism from US President Trump over OPEC and global oil supply. Trump’s latest jab at the largest group of oil producing countries is not is his first attempt to put pressure on the petroleum cartel to raise crude output. In fact, Trump’s oil tweet a month ago also sent prices swinging lower when he said it is “very important that OPEC increase the flow of oil.”

CRUDE OIL PRICE CHART: 5-MINUTE TIME FRAME (APRIL 26, 2019 INTRADAY)

Crude Oil Price Chart After US GDP Report and Trump OPEC Call

Prior to today’s slide lower, markets witnessed a 55 percent surge in oil since the start of the year. The move higher was primarily driven by pledges from OPEC to cut oil production and restore supply and demand imbalances in response to slowing global growth.

Turmoil in Libya and Venezuela as well as the expiration of exemptions to Iranian sanctions have all likely exacerbated the move higher in oil prices. Now, fears are starting to build that the steep ascent in oil prices over the last 4 months could begin to drag economic growth lower. This could be the result of higher oil prices translating into rising input costs on firms and eventually consumers.

The dramatic move in oil today is a bit surprising on the surface, however, considering the massive US Q1 GDP beat. The US economy expanded 3.2 percent in the first quarter which blew past Bloomberg’s median consensus of 2.2 percent. Initially, one might expect the news of higher economic growth to boost the case for rebounding global GDP, leading to a similar rise in demand for oil and thus oil prices.

Although, when ‘looking under the hood’ of the US GDP report, the details appear to be bleaker than the 3.2 percent headline number reported. The better than expected US GDP number was largely driven by a hefty build in inventories, a reduction in imports in addition to higher state and local government outlays – components that generally do not warrant a celebration.

This is also indicated by the lack of conviction in the equity markets and skepticism in the bond markets with the S&P500 only up a mere 0.3 percent after opening up in the red and the US10YR Treasury yield dropping to 2.5 percent.

If markets remain unconvinced that economic fundamentals are turning higher – which appears to only be occurring in the United States while the rest of the world continues to struggle – resurfacing global growth slowdown fears could drag oil prices lower. Furthermore, the downside risk of another Trump tweet at OPEC always remains a possibility.

TRADING RESOURCES

Whether you are a new or experienced trader, DailyFX has multiple resources available to help you: an indicator for monitoring trader sentiment; quarterly trading forecasts; analytical and educational webinars held daily; trading guides to help you improve trading performance, and even one for those who are new to FX trading.

- Written by Rich Dvorak, Junior Analyst for DailyFX

- Follow @RichDvorakFX on Twitter

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.