empty
 
 

2017.11.1302:57:00UTC+00Oil Trading Cautious on Escalating Middle East Tensions, Rise in U.S. Drilling

Oil markets moved with a cautious sentiment on Monday amid persisting geopolitical tensions in the Middle East and after an increasing rig count in the U.S. indicated producers are starting to step up production.

Brent crude futures traded at $63.55 per barrel, 3 cents higher from their previous close. Meanwhile, U.S. WTI crude futures traded at $56.79 per barrel, rising 5 cents from their last close.

Traders stated crude prices were generally receiving sufficient support as ongoing production cuts led by OPEC along with other producers have helped in a significant reduction in surplus supplies that has been weighing down the markets since 2014.

In the fundamental aspect of supply, tensions in the Middle East increased the prospects of production disruptions.

Regardless of the Middle East tensions and OPEC-led led production cuts, traders were wary in betting on further price rallies due to a rise in U.S. drilling activity. In the latest week, U.S. drillers added nine oil rigs, marking the biggest increase since June and bringing the total number to 738, data from Baker Hughes showed.

  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST
  • Chancy Deposit
    Deposit your account with $3,000 and get $5000 more!
    In November we raffle $5000 within the Chancy Deposit campaign!
    Get a chance to win by depositing $3,000 to a trading account. Having fulfilled this condition, you become a campaign participant.
    JOIN CONTEST
  • Trade Wise, Win Device
    Top up your account with at least $500, sign up for the contest, and get a chance to win mobile devices.
    JOIN CONTEST
  • 100% Bonus
    Your unique opportunity to get a 100% bonus on your deposit
    GET BONUS
  • 55% Bonus
    Apply for a 55% bonus on your every deposit
    GET BONUS
  • 30% Bonus
    Receive a 30% bonus every time you top up your account
    GET BONUS


Can't speak right now?
Ask your question in the chat.
Widget callback