WTI steady on the open in consolidation despite Iran protests and uncertainty
- WTI opens steady as markets digest weekend riots in Iran.
- EIA data was in focus, with stockpiles on the rise by 1.16mbbl last week.
WTI has been trading in a tight range between $58.66 and $59.16 at the start of the week following a sideways range of between $58.65/59.75 when prices dropped on a de-escalation of the Iran/US conflict last Wednesday.
It has been quite a start to the year for commodities with plenty of volatility. The price of oil has been a head-turner where rising geopolitical tensions saw strong gains which dissipated very quickly following President Donald Trump's well-balanced address to the nation in response to Iran's missile attack at a US military base.
The energy sector ended the week down 3.4%, as crude oil was sold off as Trump indicating that there wouldn’t be any further military action, the market quickly sold off. This was compounded by an unexpected rise in US inventories. EIA data showed stockpiles rose by 1.16mbbl last week, against expectations of a fall – (The 1.16mb rise in crude inventory plus a 10 month high for gasoline stocks added to concerns) – WTI lost 6.36%.
Traders watching opening global markets
With protests in Iran over the weekend though, and more rocket attacks on Sunday, more on that below, traders will be watching price action throughout the day and various global regions opening.
Read more here: Iran admits to shooting down of Ukrainian aeroplane, rioters demand resignation of senior leaders, and here: Rocket attack in Iraq base hosting US troops and here: US Treasury Sec. Mnuchin: US imposes sanctions on Iran as result of attack on US