Never miss a story from Martin Essex

Subscribe to receive daily updates on publications
Please enter valid First Name
Please fill out this field.
Please enter valid Last Name
Please fill out this field.
Please enter valid email
Please fill out this field.
Please select a country

I’d like to receive information from DailyFX and IG about trading opportunities and their products and services via email.

Please fill out this field.

Your Forecast Is Headed to Your Inbox

But don't just read our analysis - put it to the rest. Your forecast comes with a free demo account from our provider, IG, so you can try out trading with zero risk.

Your demo is preloaded with £10,000 virtual funds, which you can use to trade over 10,000 live global markets.

We'll email you login details shortly.

Learn More about Your Demo

You are subscribed to Martin Essex

You can manage your subscriptions by following the link in the footer of each email you will receive

An error occurred submitting your form.
Please try again later.

Crude oil prices, news and analysis:

  • In a move that would normally boost crude oil prices, armed drones have struck two oil pumping stations in Saudi Arabia in the same week that Saudi oil tankers were attacked in the region.
  • However, oil traders are paying more attention to news from the American Petroleum Institute (API) of a large surprise build in crude inventories of 8.6 million barrels in the week ending May 10.

Crude weakness

US inventories of crude oil increased unexpectedly by 8.6 million barrels in the week to May 10, according to the API, in an announcement that will likely keep oil prices weak despite ongoing conflict in the Middle East.

Saudi Arabia said Tuesday that drones had hit oil pumping stations near its capital, Riyadh just two days after an attack on oil tankers off the coast of the United Arab Emirates – but the news had only a limited impact on crude prices, suggesting the path of least resistance is downwards.

Moreover, the International Energy Agency (IEA) said Wednesday that rising US output is filling the gap left by US sanctions on Iran and Venezuela that have restricted output from these two major exporters. It also said that global demand for crude in 2019 would be less than it had previously forecast.

Against this background, the price of US crude is again edging lower and could challenge trendline support around $61/barrel near-term.

US Crude Oil Price Chart, Hourly Timeframe (May 2-15, 2019)

Latest US crude oil price chart.

Chart by IG (You can click on it for a larger image)

Click here for our longer-term forecasts for oil and other assets

Looking ahead, the next focus for oil traders will be official inventory data later Wednesday from the US Department of Energy. Crude stockpiles are forecast to have fallen by 0.8 million barrels in the week ending May 10, after a drop of 4.0 million barrels the week before, but the API data suggest that a rise is not impossible.

Find out here how to trade crude oil

Resources to help you trade the markets:

Whether you are a new or an experienced trader, at DailyFX we have many resources to help you:

--- Written by Martin Essex, Analyst and Editor

Feel free to contact me via the comments section below, via email at martin.essex@ig.com or on Twitter @MartinSEssex