- WTI attempts to recover recent losses on Russia’s deepened oil export cuts.
- Russian Deputy Prime Minister Alexander Novak said that Russia would deepen oil cuts in December by 50,000 bpd.
- The leading shipping firms to avoid the Suez Canal route as Houthi militants escalated their assaults on commercial vessels.
West Texas Intermediate (WTI) price struggles to regain recent losses, hovering around $72.10 per barrel in the Asian market on Monday. Crude oil prices find support from Russian Deputy Prime Minister Alexander Novak's statement. He mentioned that Russia is considering deepening oil export cuts in December by potentially 50,000 barrels per day (bpd) or more to bolster global oil prices. These additional cuts would go beyond the 300,000 bpd that had already been agreed upon for this year.
In addition, adverse weather conditions in Russia have contributed to the support for Crude oil prices. Moscow suspended approximately two-thirds of loadings from ports. Moreover, the geopolitical situation has provided a boost to oil prices, with concerns rising due to Houthi attacks on ships near Yemen. The attacks have raised worries about potential disruptions in oil supply, leading shipping firms to consider avoiding the Suez Canal as Houthi militants in Yemen escalated their assaults on commercial vessels in the Red Sea.
Moreover, the bullish forecast from the International Energy Agency (IEA) that oil consumption will increase by 1.1 million bpd in 2024 contributed to underpinning the WTI price. On Friday, the data showed that Baker Hughes Rig Counts reduced to 501 from the previous number of 503, which suggests slightly less consumption of products and services produced by the oil service industry.
The US Dollar Index (DXY) has experienced a nearly 4% weakening over the past two months. A further decline could stimulate oil demand from other countries as it becomes more affordable to purchase oil. The recent challenges for the US Dollar stem from dovish comments made by various Federal Reserve officials. Investor attention will now shift to Consumer Confidence and Existing Home Sales Change on Wednesday.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD accelerates losses to 1.0930 on stronger Dollar
The US Dollar's recovery regains extra impulse sending the US Dollar Index to fresh highs and relegating EUR/USD to navigate the area of daily troughs around 1.0930 in the latter part of Friday's session.
GBP/USD plummets to four-week lows near 1.2850
The US Dollar's rebound keep gathering steam and now sends GBP/USD to the area of multi-week lows in the 1.2850 region amid the broad-based pullback in the risk-associated universe.
Gold trades on the back foot, flirts with $3,000
Gold prices are accelerating their daily decline, steadily approaching the critical $3,000 per troy ounce mark as the Greenback's rebound gains extra momentum and US yields tighten their retracement.
Can Maker break $1,450 hurdle as whales launch buying spree?
Maker holds steadily above $1,250 support as a whale scoops $1.21 million worth of MKR. Addresses with a 100k to 1 million MKR balance now account for 24.27% of Maker’s total supply. Maker battles a bear flag pattern as bulls gather for an epic weekend move.
Strategic implications of “Liberation Day”
Liberation Day in the United States came with extremely protectionist and inward-looking tariff policy aimed at just about all U.S. trading partners. In this report, we outline some of the more strategic implications of Liberation Day and developments we will be paying close attention to going forward.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.