EBC Markets Briefing | Crude prices down as Venezuela weighs exit from OPEC

Oil prices fell on Friday and are on track to snap a two-week winning streak, following a report that Trump is no longer interested in the June deal framework.

According to an Iranian official, Iran has opened a 'temporary and limited' shipping corridor through the Strait of Hormuz, noting that the future of maritime traffic hinges on diplomatic progress with Washington.

The US is reportedly considering new tariffs on semiconductors. The measures are still in development and could change significantly over the next few months.

The Trump administration is actively working toward an agreement aimed at guaranteeing long-term access to a fraction of Venezuela's petroleum reserves, according to individuals close to the discussions.

Venezuela is considering withdrawing from OPEC as it deepens its ties with the US, according to a Bloomberg report, noting that the nation has failed to meet its oil production quotas for years.

US crude oil inventories edged up in a fourth consecutive weekly increase as both imports and exports fell and production held steady, the EIA said.

EBC Financial Group analyst says that WTI crude showed the head and shoulders formation - a classic bearish reversal signal. A decisive push below $82.45 would expose $73.50.

Asset Recap

As of market close on 27 August, among EBC major products, Salesforce shares led gains after the company reported a beat on Q2 earnings and announced an expanded partnership with Anthropic.

French stocks tumbled amid political turmoil. The country faces a particularly perilous annual budget battle in the coming months ahead of next spring's presidential election.

Software stocks have taken a hit this year on fears that generative AI could disrupt the software-as-a-service, or SaaS, business model. But analysts predict a sustainable rebound may be close.

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EBC Financial Group Disclaimer: This material is for general information purposes only and is not intended as (and should not be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by EBC Global Financial Collaboration or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.