Skip to content

CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please ensure that you fully understand the risks involved. CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please ensure that you fully understand the risks involved.

Brent crude could hit $70 on US EIA data as oil prices continue to rise

Oil prices have risen for the fourth consecutive day on Wednesday, coming ever closer to breaking the $70 landmark level, with the commodities rise driven by supply cuts and US sanctions.

Oil Source: Bloomberg

Oil prices rose for the fourth day in a row on Wednesday, with Brent nearing a five-month high of $70 a barrel, driven by OPEC-led supply cuts and US sanctions imposed on Iranian and Venezuelan exports.

Brent futures climbed to a high of $69.96 on Wednesday morning, before falling slightly to $69.68. Meanwhile, West Texas Intermediate (WTI) climbed 9 cents to $62.67.

Breaking $70 level ‘psychologically important’

In an interview with Reuters, PVM oil broker Stephen Brennock said that oil prices breaking through the $70 a barrel threshold is ‘psychologically important’ with the commodity coming close, but ultimately failing to do so over the last few weeks.

‘Underpinning this latest bout of upward pricing pressures is the positive afterglow from surveys pointing to another sizable fall last month in OPEC output,’ he said. ‘Reduced supplies from the producer group will go a long way to cementing the tighter fundamental backdrop’

EIA data could push oil prices above $70 level

Oil prices could well break through the $70 level if official numbers from the US Energy Information Administration (EIA) reveal a reduction in US stockpiles and output, with the organisation scheduled to release its weekly report later on Wednesday.

In a note to investors, Commerzbank said that the EIA could revise down US output, with the agency recording 100,000 barrels a day (bpd) decrease in production in January to 11.9 million bpd.

‘The noticeable decline in drilling activity since the start of the year also pints to less dynamic growth in US oil production,’ the bank said.

IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.

No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. Please see important Research Disclaimer.

Please also note that the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.

European Central Bank meeting

Learn about how the ECB meeting affects interest rates and price stability ahead of the next announcement.

  • How might the next meeting affect the markets?
  • What are the key rate decisions to watch?
  • Why is the Governing Council announcement important for traders?
Find out more

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Tuesday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

<h3>How much does trading cost?</h3>
<h3>Find out about IG</h3>
<h3>Plan your trading</h3>

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.