Crude Oil Prices Responded Abruptly to Supply Conjecture

Crude Oil

Crude oil fell around USD 5 to a 10-month low on Monday before returning to where it commenced the week.

The wild ride was prompted by a Wall Street Journal article that stated that OPEC+ is considering a rise in production of 500,000 barrels daily at their next week’s gathering. Saudi Arabia later denied the report, and this saw the price roar back toward opening levels.

Although Crude oil experienced wild price swings overnight, it has been relatively stable in Asia today, with the WTI futures contract above US$ 80 bbl while the Brent contract is approaching US$ 88 bbl. Gold managed to reach an uptick, trading above US$ 1,740.

Fractures began to appear in the oil market last Friday when the futures market dipped into contango for the first time since May 2021. Contango indicates underlying supply and demand dynamics within the oil market.

Both episodes of contango saw the market move back into backwardation to end the session on Friday and Monday.

Leave a Reply

Important Link

Fund Your Deriv Account
Withdraw Funds to Your Local Currency
VIP Trading Signals
Learn To Trade

Contact Us

Follow Us


Forex, Crypto, Options, and Binary Options have both large potential rewards and large potential risks. Therefore, before investing or trading any of the assets, ensure you are aware of and willing to accept the accompanying risks. Do not trade money you cannot afford to lose.

All Rights Reserved. None of the content of this website can be published elsewhere by any means without the prior consent of the owner(s). Please, check our terms & conditions and privacy policy before continuing to use this website.

This website and its owner(s) are not in any way liable for any incurred loss, whether caused by the information provided on this website or otherwise. The use of this website, including the content and information provided, is the user’s sole liability.