What’s Driving the Crude Oil Market?
Crude oil is trading off Monday’s lows
WTI (West Texas Intermediate) and Brent crude oil look stable this morning ahead of the US inventory levels report. It will be released by the American Petroleum Institute later today. This report will be followed by the EIA’s (U.S. Energy Information Administration) crude oil inventories report. It’s scheduled to release at 10:30 AM EST on April 27. At 8:04 AM EST on April 26, WTI crude was trading at $43.19—a gain of 1.3%. Brent crude is trading at $44.95 per barrel—a surge of 1.4%.
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News from Saudi Arabia is moving markets
Recently, the string of news related to Saudi Arabia is moving markets. On April 25, Saudi Arabia announced its economic reform plans under the name of “Vision 2030.” This gave information about Saudi Arabia’s plans to become completely independent of oil by 2020. Deputy crown prince Mohammed bin Salman Al-Saud announced his plans to sell less than a 5% stake in the state-owned energy company Aramco through and initial public offering. To learn more about his vision to change the dynamics of Saudi Arabia’s economy, read Why Crude Oil Started This Week on a Weaker Note.
In addition, the supply expansion news related to Saudi Aramco, which includes the expansion of two of its oil fields Shaybah and Khurais, also weighed on crude oil prices. To learn more about the expansion plans of state-owned Saudi Aramco and its impact on the oil output, read Crude Oil Feels Pressure Due to Saudi’s Supply Increase.
On April 25, there was weakness in crude oil prices along with increased volatility. Oil producers QEP Resources (QEP), WPX Energy (WPX), Carrizo Oil & Gas (CRZO), and ExxonMobil (XOM) fell 3.4%, 1.2%, 3.3%, and 0.23%. The SPDR S&P Oil & Gas Exploration and Production ETF (XOP) fell 1.4%.