Reasons why Oil is moving sideways in the past 2 days
Crude Oil price is moving in 2 different directions in the past 2 days over mix data which confuses traders and investors.
Yesterday Oil rallied on US data showing unexpected decline in US crude Oil inventories. US crude Oil supplies fell by 4.9 million barrels last week, The US energy administration said on Wednesday. Analysts were actually predicted a rise of 3.3 million barrels, so this big surprise fueled Oil traders’ motivation to buy, and price closed at $37.7 a barrel.
Oil prices have rallied in the past 2 months on hopes that major Oil producers in the middle east will close a deal to cut output so to lower global supply. Key players, like Russia and Saudi Arabia are due to meet on April 17 in Doha, Qatar to discuss the option.
This week Oil prices dropped after Saudi Arabia said it will cut its output only if Iran will agree to cut its output also. Iran Officials said in response they will keep production at the same pace until they will reach the production levels before the sanctions. In addition, it is not clear if Libya will go with the plan to cut oil production.
The result of this uncertainty we see on the chart, as oil moves sideways in the past 2 days.