+357 25 105 641
  • Facebook
  • YouTube
Oil up on lower stockpiles
Published on 21.09.2016 22:08

The oil price jumped more than 2 percent on Wednesday after figures out of America today showed a surprise drop in crude stockpiles for a 3rd straight week.

At 4.57(GMT) Brent crude oil was trading at $46.75 a barrel up from $45.88 in yesterday’s trading.

The U.S. Energy Information Administration (EIA) said that oil inventories dropped by 6.2 million barrels last week which was well below the expectations of most analysts who predicted a figure of 3.4 million barrels.

The news may back up a report by S&P today which noted that although there may be a bit of a glut in the oil market at the moment, a numbers of factors would come into play and bring it under control. The ratings agency has revised their oil price for the rest of 2016 from $40 to $42 a barrel.

"The current oversupply of oil appears unlikely to persist into the medium or longer term as natural field depletion and a lower number of new field developments have a greater bearing on supply," S&P said in a report on Wednesday.

The oil price is expected to come under volatility later in the trading session as the US Federal Reserve announces their latest interest rate decision with further gains predicted if as expected the Fed keeps rates on hold.

 

The material published in on this page is produced by the FIBO group companies, and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC; furthermore it has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.

Andrew Masters

Analyst

The power of leverage is the power of Forex.
×

Risk warning: Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, your level of experience and preparation of taking risk. The possibility exists that you could sustain a loss of some or of all of your initial investments and therefore you should not risk more than you are prepared to lose. Please seek independent financial advice if necessary.

Important notice
By clicking "Continue" you will be redirected to the website operated by FIBO Group, LTD company registered in BVI and regulated by FSC. Click "Cancel" to remain on this page.