Crude continues to pullback from the monthly-high (64.21), with oil prices at risk for a larger correction as they carve a fresh series of lower highs and lows.
Fresh updates from the U.S. Energy Information Administration (EIA) appear to be weighing on oil prices as crude inventories increased 3.02M barrels in the week ending February 23, while field production climbed to 10.28M b/d during the same period.
Indeed, the push by the Organization of Petroleum Exporting Countries (OPEC) and its allies have helped to generate higher oil prices as group carries the production-cutting agreement into 2018, and the rebalancing efforts should keep crude afloat for now especially as United Arab Emirates Energy Minister Suhail Al Mazrouei notes that the group has outpaced its efforts in reducing supply. However, the ongoing expansion in U.S. production may produce headwinds for crude unless OPEC and its allies implement a more permanent solution to balance the energy market, and recent price action raises the risk for a more meaningful pullback as the rebound from the February-low (58.11) sputters ahead of the 2018-high (66.63).
USOIL Daily Chart
GBP/USD is back under pressure as U.K. Prime Minister Theresa May appears to be on track to reject the European Union’s (EU) Brexit draft bill, and a break of the monthly-low (1.3765) may stoke a larger correction in the pound-dollar exchange rate as both price and the momentum indicator threaten the bullish formations carried over from late last year.
