OIL
Brent oil prices fell in early Tuesday trading, extending the downward momentum from the previous session. Since markets opened on Monday, the price per barrel dropped over $4, or roughly 5%, as demand expectations turned increasingly pessimistic. The latest OPEC outlook report forecasts slower demand growth for oil, particularly from China, whose economic performance continues to underwhelm despite Beijing's recently announced stimulus measures. Easing some of the upward pressure on oil prices were reports suggesting that Israel's potential military action would target Iranian military sites rather than oil or nuclear facilities. This news helped alleviate traders' fears of a full-scale war in the Middle East that could disrupt the global oil supply. Against this backdrop of an uncertain demand outlook and diminishing concerns over a broader Gulf conflict, the risks to oil prices now appear skewed to the downside.
Ricardo Evangelista – Senior Analyst, ActivTrades
Source: ActivTrader
The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and as such is to be considered to be a marketing communication.
All information has been prepared by ActivTrades (“AT”). The information does not contain a record of AT’s prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not a reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acting on the information provided does so at their own risk.