Oil bounced around in today’s US session but has resolved to the upside on a combination of things:
Economic optimism and a positive risk mode after a US-Vietnam trade dealA survey from the Dallas Fed showing 42% of large US oil production firms expect to significantly decrease drillingBroad USD weakness (tying back to trade and perhaps the US budget)
Mixed in with that was a US weekly inventory report that was mostly bearish and marked the lows of US trading at $65.18. Oil has since rallied nearly $2 and is at the best levels since the Israel-Iran ceasefire.
This article was written by Adam Button at www.forexlive.com.