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Crude Oil Price Analysis & News
- Weak Chinese data sparks demand concerns
- Brent sell-off fueled by hopes of a nuclear deal with Iran
Crude oil futures fell this morning as Brent crude fell more than 4% at the start of the week. First, oil prices initially moved lower due to weak Chinese data and retail sales well below expectations, raising concerns about the outlook for oil demand.
Meanwhile, the fall in oil prices was exacerbated by recent remarks by Iran’s foreign minister, after he said a consensus was reached in negotiations on condition that Iran’s red lines be respected. That, in turn, led to markets pricing in a higher likelihood of a nuclear deal with Iran, so oil prices came under significant pressure during the London meeting. That being said, while a deal could see Brent fall back below $90, the focus now is on the U.S. reaction as it is up to the U.S. to agree to the remaining three points. As a result, oil’s sensitivity to headlines has increased. For those keeping tabs on the latest oil wells, #OOTT on Twitter is crucial for short-term intraday oil traders. As a reminder, for those who trade foreign exchange, the Canadian dollar is most sensitive to oil prices, as shown in the chart below.
30-Day Forex-Oil Correlation
Brent Crude Oil Chart: Daily Time Frame
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