x
0

Crude prices hold steady as markets pause

CommoditiesApr 21, 2017 06:24AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. Crude oil little changed as markets brace for French election

Investing.com - U.S. oil prices held steady on Friday, as markets were still digesting Thursday’s Paris terrorist attack and were gearing up for the first round of France’s presidential election on Sunday amid ongoing uncertainties over global oil supply levels.

U.S. crude futures for June delivery held steady at $50.70 a barrel, just off Wednesday’s two-week trough of $50.09.

On the ICE Futures Exchange in London, the June Brent contract was little changed at $53.01 a barrel, not far from Wednesday’s nearly three-week low of $52.58.

Markets were jittery after a French policeman was shot dead and two others were wounded in central Paris on Thursday night in an attack claimed by the Islamic State.

Market participants were also eyeing the first round of the French presidential election due on Sunday, as recent polls have forecast the most likely outcome to be centrist Emmanuel Macron against far-right candidate Marine Le Pen.

Meanwhile, the greenback mildly recovered from recent losses after U.S. Treasury Secretary Steven Mnuchin said on Thursday that the administration will unveil a tax reform plan very soon.

The comments eased doubts over whether President Donald Trump will be able to pass tax reforms in the near term.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was steady at 99.76 on Friday, off the previous session’s three-week lows of 99.29.

Oil prices typically weaken when the U.S. currency strengthens as the dollar-priced commodity becomes more expensive for holders of other currencies.

But sentiment on the greenback remained under pressure after North Korean state media warned the U.S. earlier in the week of a "super-mighty preemptive strike" and said don't "mess with us."

On the other hand, crude oil prices were also under pressure amid concerns an ongoing rebound in U.S. shale production could derail efforts by other major producers to rebalance global oil supply and demand.

In November last year, OPEC and other producers, including Russia agreed to cut output by about 1.8 million barrels per day between January and June. A final decision on whether or not to extend the deal beyond June will be taken by the oil cartel on May 25.

The U.S. Energy Information Administration said this week that crude oil inventories fell by 1.0 million barrels in the week ended April 14, a smaller draw than expected.

The report also showed that gasoline inventories increased by 1.5 million barrels, disappointing expectations for a drop 1.9 million barrels, despite heavier refining activity.

Crude prices hold steady as markets pause
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

 
Are you sure you want to delete this chart?
 
 
Replace the attached chart with a new chart ?
Post
Post also to:
1000
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
 
Replace the attached chart with a new chart ?
Post 1000
Please wait a minute before you try to comment again.
 
 
 
Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Add Chart to Comment
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.