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The weekly crude oil inventories report is delayed this week due to the New Year’s Day holiday. So, the report will be released tomorrow instead of the usual Wednesday release date.
Last week, the EIA reported a 5.5 million barrel drawdown which took markets by surprise and helped crude prices continue to rally.
The market is now forecasting a subsequent 3.1 million barrel drawdown which should see prices higher again.
Oil Higher on Trade Deal News
The recent upside in oil prices has largely been driven by relief over the trade deal between the US and China.
Last month, the two sides announced that they have agreed to sign the phase-one trade deal which was initially laid out in October. The market had been expecting an announcement, which came just ahead of the December 15th date for the next round of US tariffs.
The reaction to the deal has been clearly visible in crude markets. Traders are buying oil in anticipation of increased demand thanks to more trade projected between the US a...
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