Earlier Tuesday morning in Asia, news crossed wires, via Reuters that the Chicago Mercantile Exchange (CME) cut NYMEX crude oil June maintenance margins by 25%. The move takes the margin figure down from $12,000 to $9,000.
Market implications
The CME earlier hiked the markets by around 17.6% during the late-April but the recent cut of 25% will make a discount to the total margin requirements. While the news seems to oil-positive, WTI crude oil June futures on NYMEX currently cheers upbeat sentiment due to likely improvement in China’s demand while taking the bids above $32.00.
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