Oil extends rebound on Iran’s support, API report

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 18, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    Oil benchmarks on both sides of Atlantic extend the rebound from the Asian trades, as markets continue to cheer Iran’s endorsement on output freeze talks as well as the latest fall in inventories.

    WTI rallies heading into EIA stockpiles report

    Currently both crude benchmarks are heading higher into Europe, with WTI rallying 1.90% to 31.24 and the Brent oil rises 0.75s% to 34.78. Oil prices continue to climb higher this session, having witnessed almost 8% jump in the previous session, after Iran voiced its support for output freeze in line with Saudi, Russia and Iraq’s initiative to bolster prices.

    Iranian Oil Minister Bijan Zangeneh noted, "The decision taken so that OPEC members and non-OPEC countries freeze their production ceiling in a bid to stabilize the market and improve prices in the interest of consumer and producer is also supported by us."

    Adding to the positive tone around the black gold, Tuesday’s API report showed that crude reserves unexpectedly fell last week. US crude inventories fell by 3.3 million barrels in the week to February 12; against a forecast of about 3.9 million barrels rise.

    Looking ahead, markets now await the official government inventory report (EIA) from the US for further incentives on oil. Markets are expecting crude reserves to rise about 3.2 million barrels last week.
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