WTI crude oil futures may find extra impetus from the Saudi Energy Minister’s statements and US crude oil inventories, even as it trades in range-bound mode in London trading. US President Donald Trump had promised to bridge the supply gap with US stockpiles, even as Saudi Aramco officials are unsure of when the lost output can be recovered.
Going forward, there is growing anxiety among oil traders as the US and Saudi authorities are laying the blame for the attacks squarely on Iran. What this will mean in terms of potential retaliations from the US and Saudi Arabia and the implications in the entire Middle East region remain subjects of speculation.
Saudi Oil Minister’s Press Conference on Tuesday: Could Trigger Short-term WTI Volatility
The Saudi Energy Minister, Prince Abdulaziz bin Salman, is expected to share more information in a press conference at 17.15GMT on Tuesday. This event could provide a near-term trigger for crude oil prices as questions will no doubt be asked of the current state of Saudi’s oil, possible recovery time for output deficit as well as any possible responses to the attacks.
Wednesday will also see the release of the crude oil inventories. This release may take on added importance in the next few weeks if President Trump follows through with his promise to use US crude stockpiles to offset the 5% global supply deficit that has been created from the Saudi situation.
WTI crude oil is presently trading at $61.65 and is trending downwards towards the central pivot at 61.33.