U.S. West Texas Intermediate and Brent petroleum futures posted a choppy two-sided trade, but still managed to shut over 2% higher for the week. Traders put aside most worries about the raging pandemic in India by surmising that the top of lockdowns within the us and parts of Europe would offset any drop in demand from the Coronavirus-ravaged country.
Last week, June WTI petroleum futures settled at $64.90, up $1.32 or +2.08% and July Brent petroleum closed at $68.28, up $1.52 or +2.23%.
Prices rose to their high of the week after the American Petroleum Institute (API) reported larger than expected across the board draws in petroleum, gasoline and distillates on Tuesday. However, a mixed U.S. Energy Information Administration (EIA) report on Wednesday showed an unexpected integrate gasoline inventories and this paused the buying and should have brought during a few sellers.
Gasoline inventories will probably drive the worth action in the week because the U.S. moves closer to the summer driving season. But there's a serious snag at the beginning of the week that the market has overcome: ransom-seeking hackers have broken into Colonial Pipeline, prompting the corporate to shut one among America’s major arteries for fuel delivery.
We don’t skills petroleum are going to be affected because it'll depend upon whether the ransomware made its way into the company’s operational technology network, which interfaces with the pipeline itself, Reuters wrote.
While we expect to ascertain a jump in gasoline and distillate prices because it's the country’s top fuel pipeline network, petroleum prices could actually fall if there's less-demand from the refineries. At this point , we’re just getting to need to wait and see if things are often rectified during a few days.
Setting aside the pipeline issue, the direction of the petroleum market in the week is probably going to be determined by the API and EIA gasoline inventory numbers.
If you're aiming to take your trading to the next level, the Capital Street FX live account is the perfect place for you to do that! Trade Forex, Commodities, Indices, Crypto & CFDs on currencies, with access to the latest technical analysis and trading information. Trade the right way, open your live account today.
Published by capitalstreetfx