Investors in the oil market have had a lot to digest this week, with rising geopolitical tensions in the Middle East serving as a positive catalyst for oil prices. The ongoing tension in the region is seen as bullish for oil markets, providing psychological support to the bulls. It is worth noting, however, that so far there have been no significant disruptions to oil supplies as a result of these tensions.
In addition to the Middle East situation, Russian oil companies Rosneft and Lukoil are planning to cut oil exports from the key port of Novorossiisk in the Black Sea. This move is expected to result in a reduction of 220,000 barrels per day in exports, according to a recent Reuters report.
Looking at the bigger picture, strong summer demand for oil has exceeded expectations and has been a major factor in supporting oil prices since the beginning of June. WTI oil has seen a more than 15% increase from its lows on June 4th, showing the strength of the market.
Today, oil traders will be closely watching the Non Farm Payrolls report, which will provide crucial information on the U.S. job market. Analysts are expecting a decline in non farm payrolls from 272,000 in May to 190,000 in June. A positive report could provide further support to oil prices by highlighting the strength of the U.S economy. The Unemployment Rate, another important factor to watch, is expected to remain steady at 4%.
As investors navigate through the dynamic oil market, it is important to stay informed and prepared for potential market movements. Keep an eye on the latest developments and trends to make well-informed investment decisions. Extreme Investor Network is dedicated to providing unique insights and analysis to help investors thrive in the fast-paced world of trading. Stay ahead of the curve with our exclusive content and expert advice.