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Oil Drops on Tuesday, Bounces After Wednesday’s Session Opens

Summary:
Futures for crude oil declined during Tuesday’s session, though they bounced a bit after the next session started. Analysts speculated that the decline was a reaction to the news about the resignation of John Bolton from the post of a national security advisor. Bolton is known for his hawkish stance against Iran. It is possible that without him the United States will soften the stance on the Middle Eastern country, which may result in a return of Iranian oil to the market. Crude oil also declined after the US Energy Information Administration downgraded its price forecast. Now, the agency predicts that the average price for WTI crude oil in 2019 will be at .31 per barrel, down from .87 in the August report. Brent crude is expected to average at .39 per barrel, down from .15

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Futures for crude oil declined during Tuesday’s session, though they bounced a bit after the next session started. Analysts speculated that the decline was a reaction to the news about the resignation of John Bolton from the post of a national security advisor. Bolton is known for his hawkish stance against Iran. It is possible that without him the United States will soften the stance on the Middle Eastern country, which may result in a return of Iranian oil to the market.

Crude oil also declined after the US Energy Information Administration downgraded its price forecast. Now, the agency predicts that the average price for WTI crude oil in 2019 will be at $56.31 per barrel, down from $57.87 in the August report. Brent crude is expected to average at $63.39 per barrel, down from $65.15 in the previous estimate.

Futures for WTI crude oil in October rose by $0.10 (0.17%) to $57.95 per barrel as of 21:09 GMT on NYMEX after falling by $0.21 on the previous session. November futures for Brent crude gained by $0.24 (0.38%) to $62.83 per barrel on ICE following the drop by $0.45 (0.8%).

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Vladimir Vyun
Vladimir is an online journalist with background in computer science and work experience in pension funds. He contributes news reports, fundamental analysis and sentiment forecasts to TopForexNews.com and CommodityBlog.com. His main specialization is the currencies of emerging economies and inter-market correlations with commodity and bond trading.

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