November crude oil prices trended lower in overnight and early morning action ahead of US labor market data. While global equity markets were on a higher track this morning, a weak economic outlook from the Bank of Japan, reduced global GDP forecasts from the IMF and a weaker than expected read on German Industrial Production provide a negative headwind. It is also possible that the crude oil market has come under pressure ahead of an expected announcement from the Mexican government regarding a new oil find off their coast. Lingering concerns over a slowing global economy continue to weigh on oil demand prospects and remain a concern to elevated crude oil prices. However, tensions between Syria and Turkey this week have escalated, and that was a driving force behind yesterday's sharp snap-back rally in crude oil prices. The geopolitical risk premium seemed to get an added boost from unrest in Iran following a plunge in their domestic currency.
*Disclaimer: The information in the Market Commentaries was obtained from sources believed to be reliable, but we do not guarantee its accuracy. Neither the information nor any opinion expressed therein constitutes a solicitation of the purchase or sale of any futures or options contracts.
Copyright CME Group All rights reserved.