The oil price may be in for a much-needed rally starting later today, over predictions the United States could choose to quit the global climate accord and by a report that showed US crude stockpiles had fallen more than expected.

Data released the American Petroleum Institute showed oil inventories fell by 8.7 million barrels against analysts’ expectations for a drop of 2.5 million barrels which may bring into question the increased production in the US which many predicted should have severely curbed the oil price and kept a lid on prices.

The big play coming up in gold today is whether US president Donald Trump will announce that America has decided to pull out of the agreement to tackle climate change that demands countries reduce carbon omission in order to avoid global warming

Trump is in a tight spot, because his major supporters of from states in the US which burn a lot of fossil fuels like coal, that produces vast amounts of carbon emissions.

The US President has to choose between appeasing his supporters or causing a rift with many world leaders who are against Trump’s proposed move.

If he indeed chooses to walk away from the agreement oil could be in for some serious gains,

"If he actually withdraws the U.S from the climate accord, this would signal his intention to further roll-back emission regulations that would favour the use and demand of fossil fuels, thus giving a much needed boost to oil prices," said Jonathan Chan, investment