- Crude prices have been on the soft side for several weeks as traders recoil ahead of possible production hikes.
- Trump-Iran tensions are continuing to put a floor under declines as the US seeks to embargo all Iranian oil exports.
Crude oil prices are getting squeezed into the middle as commodity traders await impactful headlines regarding energies, and WTI is cycling near 70.60.
Support is being provided to oil prices by supply shortages in Libya and Canada, as well as strike action at key production facilities in Norway and Iraq, but barrel costs still managed to decline for a second straight week as traders keep an eye out for further production increases from Russia and OPEC. On Friday Russian Energy Minister Alexander Novak noted that further production increases from Russia could be on the way, and the US is currently planning to begin selling off major chunks of the US’ Strategic Oil Reserve in an attempt to bed down global prices.
Oil speculators are also sure to be keeping their eyes closely on the upcoming Trump-Kim summit slated for today in Helsinki, beginning at 10:00 GMT. Trump has been vocal about his dissatisfaction with oil prices recently, Tweeting at OPEC to “do something” about oil prices, which began lifting shortly after revelations that the Trump administration is seeking to get Iran locked out of global oil markets.
WTI levels to watch
Oil prices are stabilizing close to last week’s lows near 69.25, with further support sitting at June’s swing low of 63.55, while resistance is sitting at multi-year highs near 75.35.
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