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Oil prices extend gains ahead of G20 summit
Commodities
06/26/2019

Oil prices extend gains ahead of G20 summit

Brent crude refreshed June highs around $65.43 on Wednesday and tries to settle above the $65 handle as the G20 summit looms.

Brent crude refreshed June highs around $65.43 on Wednesday and tries to settle above the $65 handle as the G20 summit looms. Risk sentiment has deteriorated somehow after comments from Fed’s Powell and Bullard were not as dovish as expected. But this is overshadowed by lingering tensions between the US and Iran, fueling concerns over possible supply disruptions.

The market derives additional support from the API data. The report showed crude oil inventories in the US declined by 7.5 million barrels last week, while traders expected a draw by 2.5 million. Should the official EIA data confirm positive numbers, the futures could cement positions above the mentioned psychological level.

In a wider picture, oil bulls hope for a positive outcome of the upcoming G20 summit, where US President Trump is scheduled to meet with China President Xi Jinping. Also, traders will expect comments from Russian President Vladimir Putin and Saudi Arabia Crown Prince Mohammad bin Salman on the sidelines of the summit. Their statements on OPEC+ deal could have a strong impact on crude prices.

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