Oil Drops After Oversupply Concerns Take Over

July 23, 2018 Share Print 0

Oil prices pulled back in volatile trading on Monday as both crude benchmarks fell after rallying more than $1 a barrel early in the session on escalating tensions between the U.S. and Iran.

Brent crude oil LCOc1 fell 27 cents to trade at $72.80 a barrel by 12:43 p.m. EDT (1643 GMT) after earlier strengthening to a high of $74.50. U.S. crude CLc1 was down 43 cents at $67.83 a barrel, down from a session high of $69.31.

The latest downward jog came after the market focus returned to oversupply risk as Saudi Arabia and other large producers ramp up production ahead of the November deadline for other countries to comply with U.S. sanctions on Iranian crude sales, said Phil Flynn, an analyst at Price Futures Group in Chicago.

via Reuters

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Alfonso Esparza

Senior Currency Analyst at Market Pulse

Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency
trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.