CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 63% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the High risk of losing your money.

WTI bounces-back to $ 57.50 on US-Iran war risks, US rigs data eyed

2019-06-21 18:05

  • Rising fears over a US attack on Iran offer a fresh lift to the bulls.

  • Looks to retest 3-week highs of 57.77 ahead of US PMIs and rigs data.



Having reached fresh three-week highs at 57.77 in early Asia, WTI (futures on Nymex) corrected slightly to the 57 handle before the bulls fought back control in the European trades, sending the rates back towards the 57.50 region.



The latest leg up in the black gold can be mainly attributed to heightened fears of a US attack on Iran over the US drone shot down by Iran on Thursday that escalated the Middle East tensions and aggravated supply disruption concerns.



The latest reports cite that the US President Trump is prepared for an imminent attack on Iran, as the Islamic nation seems not very keen on peace talks with the US leader. US Pres. Trump warned overnight of an imminent attack on Iran



Moreover, the sentiment around the barrel of WTI remains underpinned by the increased expectations of OPEC output cuts extension beyond June while broad-based US dollar also continues to collaborate to the bullish momentum in the prices. A weaker greenback makes the USD-denominated oil cheaper for the holders in foreign currencies.



Furthermore, a bigger-than-expected drop in the US crude inventories also helps keep the buoyant tone intact around the commodity. According to the Energy Information Administration (EIA), the US crude stocks fell by 3.1 million barrels last week vs. expectations of a 1.1 million barrels decrease.



Markets keep a close watch on the development around the US-Iran conflict ahead of the US Markit flash manufacturing PMI data and Baker Hughes oil rigs count data due later today.



WTI Technical Levels





 



 


This article is published only for general use basic informatory purposes and should not be considered or depended on as a financial or investment advice. Investors should make sure that they understand the risks and seek independent financial advice at all times. CFDS ARE COMPLEX INSTRUMENTS AND COME WITH A HIGH RISK OF LOSING MONEY RAPIDLY DUE TO LEVERAGE.

Economic news

    Exchange Rates

    GBPUSD -0.22% 1.30204
    EURUSD -0.34% 1.18107
    XAUUSD +0.01% 1901.64
    XTIUSD -1.80% 38.607
    NAS100 -1.60% 11459
    US30 -2.23% 27594.5