WTI Crude Oil Edges Higher After Touching Five-Month Lows

WTI crude oil prices finally edged higher, rising from the five-month lows it had touched over worsening market sentiment.

Arslan Butt•Friday, June 7, 2019•1 min read

On Friday, WTI crude oil prices finally edged higher, rising from the five-month lows it had touched over worsening market sentiment. The main driver? Optimism over US-Mexico trade talks and a possibility of OPEC+ members agreeing to extend supply cuts beyond June.

At the time of writing, WTI is trading at around $53.28 per barrel over reports that US may be planning to delay the tariff hikes on Mexican goods. However, its gains remain limited since uncertainty continues over the trade war causing a possible slowdown in global economy.

In addition, on Thursday, the US Treasury Department further tightened Venezuelan crude oil supplies by announcing that recipients of oil from its state owned oil company could be subject to US sanctions. In May, Venezuela’s oil exports declined by over 17% due to these sanctions. In the coming weeks, the US is expected to take more economic actions against Venezuela, which could worsen the situation.

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ABOUT THE AUTHOR See More

Arslan Butt

Index & Commodity Analyst

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.