Trump, Saudi king discuss oil prices in telephone call

Trump, Saudi king discuss oil prices in telephone call

Oil prices are falling again, Friday, as concerns over short-term supply worries ease, despite the United States sanctions imposed on Iran.

Schork thinks that the crude oil prices are now at a key level of support.

Oil prices were mixed in volatile trade on Wednesday as strong US demand for fuel helped offset a sixth straight week of crude builds and evidence of rising global supply despite sanctions that are already curbing Iranian crude exports.

Because of the concerns about possible shortage of supply due to US sanctions on Iran, the oil market is also beginning to be anxious about possible oversupply and inventories that are rising in many other parts of the world.

Oil is sold in dollars, so a strong greenback increases the cost of crude for emerging markets and threatens to derail demand for the commodity.

Crude oil futures were linked primarily to the sell-off in global equity markets in October, sinking as investors sold risk assets. This made the United States the biggest oil producer in the world.

WTI and Brent crude futures continued to trend lower following reports that the U.S. has agreed to let several countries keep purchasing Iranian oil.

Investors now appear less concerned US sanctions on Iran will leave the world short of oil, though the full impact of the penalties is yet to be seen.

As Washington hopes to curtail all Iranian oil exports, the market appears to have this priced in. Earlier fears that American sanctions on Iran could result in a crude shortage are also receding, as the US shale boom gains new momentum and the Trump administration vacillates on how aggressively to target Iranian exports.

But oil supply from other countries is rising.

Crude oil prices slipped on Wednesday, extending recent slide, as data from U.S. Energy Information Administration showed crude stockpiles increased last week, rising for a sixth successive week.

WTI Crude Oil (Light Sweet) price at NYMEХ Stock Exchange down by 0.51% to $66.35 per barrel.

Hedge funds are still overwhelmingly long on oil and may have to liquidate positions if prices keep falling, accelerating a market sell-off, analysts say. Grisanti is watching for WTI to break above its 200-day moving average at $67.47 for a rebound. One is high oil prices, and in many countries they're directly related to consumer prices. I think that the narrative over the last two months has changed. His impressive career goes back nearly three decades, gaining attention with his market calls as writer of "The Energy Report".

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