Skip to main content

Market Overview

Thursday's Market Minute: Kicking Crude When It's Down

Share:
Thursday's Market Minute: Kicking Crude When It's Down

After closing down 2.87% on Wednesday, crude oil futures are continuing lower this morning after an OPEC+ meeting resulted in no more supply cuts. Thursday’s meeting focused instead on compliance and bringing participating countries’ output down to quota.

Despite yesterday’s reported draw in inventories, crude oil futures fell sharply on fears President Trump may ease sanctions on Iran. After Trump announced Tuesday he fired John Bolton as national security adviser, reports suggested the firing was due to push back on the president’s plan to ease sanctions on Iran and to sit down with Iranian president Rouhani at the U.N. General Assembly later this month. In a tweet, Trump said he “disagreed strongly with many of [Bolton’s] suggestions,” prompting him to ask for Bolton’s resignation. Bolton was a known hard-liner on issues of foreign policy, especially in regard to Iran, China and Venezuela.

With Bolton gone, investors fear an easing of sanctions that will allow Iran to produce more crude oil exports and expand global crude supplies. On Wednesday, the EIA reported a draw in crude oil inventories of 6.9M barrels for the week of Sep. 6. At 416.1M barrels, that is 5% above the level last year at this time.

Information from TDA is not intended to be investment advice or construed as a recommendation or endorsement of any particular investment or investment strategy, and is for illustrative purposes only. Be sure to understand all risks involved with each strategy, including commission costs, before attempting to place any trade.

Image Sourced from Pixabay

 

Related Articles

View Comments and Join the Discussion!

Posted-In: Crude Oil OPEC TDAmeritradeNews Markets General Best of Benzinga

Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
SPAC
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com