Oil swoons as Trump calls for lower prices

Summary:

  • Oil and Oil.WTI fall sharply (2%+) after Trump tweet

  • US president calls on OPEC to stop prices getting “too high”

  • Short-term trend could be seen to have turned lower

 

There’s been a wave of selling seen in the energy complex this lunchtime after a tweet from Donald Trump caused traders to scramble to short Oil futures. The US president took to Twitter to voice his displeasure that Oil prices were getting too high, with Brent crude (Oil on xStation) hitting its highest level in over 3 months on Friday. The message called on OPEC to “relax and take it easy” in what is quite clearly a reference to their supply cuts that have been in place since the start of the year.     

The US president has taken to social media to put pressure on OPEC after the recent rise in Oil prices. Source: Twitter

 

There are several other oil related headlines today, and while none have had anywhere near as clear an impact on the market as the Trump tweet, they are still worth noting nonetheless.  

 
  • Meanwhile, in Africa, Nigerians headed to the polls Sunday after the country’s elections were postponed amid Islamist terrorist attacks, the Wall Street Journal reported.

  • In Libya, the chairman of state-owned oil firm NOC refused to resume production at the country’s largest oilfiled while an armed group remained on the premises, Reuters reported.

  • Azeri Energy Minister: Oil At $60-$70 Per Barrel Is In Interests Of Suppliers And Consumers

  • Azerbaijan Wants Oil Price Stability Before Deciding Whether To Support Any Opec, Non-Opec Output Cut Extension

 

Oil has fallen around 200 ticks, or $2, since the early highs and in doing so the market has now dropped below the H1 cloud. This could be seen to suggest the near-term uptrend that has been in place in recent weeks has turned lower. Source: xStation

 

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