Oil Price Commentary:
Thanks to the new year holiday, and due to the current unrest in Iran -one of the largest oil producers in OPEC, oil is set for a positive week ahead. Oil price is expected to increase by 1 to 2 percent this week especially in the first two days of trading as the market still trying to digest and evaluate the impact of the current unrest in one of the largest producers in OPEC. The current situation in Iran is expected to influence the oil market this week, and oil prices may only be heading upward.Â
U.S. oil market data is also expected to support oil prices this week as crude oil inventories is expected to continue falling, and US crude oil production and rig count are expected to remain slightly unchanged following the new year holiday. However, this trend is expected to change in the second or third week of 2018 onward as we will see a rise in drilling activities in the US this year supported by the current high level of oil prices.
Oil Price Movers to Watch for This Week:
- The current unrest in Iran
- US crude oil production data (expected to remain unchanged)
- US crude oil and gasoline inventories data (expected to fall)
- Number of rigs drilling for oil in U.S. (expected to remain unchanged)
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Remark: The expectation of oil prices’ direction in this commentary are based on the oil market data and news up until the time of writing this commentary. As the week starts, new data and news are reported and could influence oil prices differently. Therefore, the direction of oil prices cloud be different from what was expected here. It is important to stay updated with oil market data and events as they occur.
