Oil prices were lower on Tuesday morning after U.S. President Donald Trump suggested selling half the nation’s strategic oil reserves to raise $16.5 billion. According to Trump’s proposal, the sale would be supplemented by increased production in Alaska. The proposal came just one day after Trump met with Saudi Arabia, the strongest public champion for OPEC’s oil cuts. If implemented, Trump’s proposed oil sale could rattle oil markets and would likely wreak havoc on OPEC’s aggressive efforts to control oil prices.
Brent crude futures traded down 23 cents on Tuesday morning at $53.64 per barrel while U.S. WTI futures were down 22 cents per barrel to $50.91 per barrel.
Suspected Terrorism Sends British Pound Lower
The sterling extended Monday’s losses on Tuesday morning after 19 people were killed in Manchester at an Arianna Grande concert. The pound traded at $1.299 and at 144.40 yen, a 0.2 decline. The blast hasn’t yet been confirmed as a terrorist attack but traders and political analysts are already speculating about the possibility.
The euro edged up 0.1 percent to $1.11251 after closing 0.3 percent higher on Monday. The dollar was slightly lower at 111.20 yen. The weaker dollar allowed gold to enjoy its third consecutive session of gains, and the commodity traded was up 0.15 percent to $1,262.10 on Tuesday morning. Traders are now looking towards an announcement of Trump’s proposed budget which is set to include a $3.6 trillion cut in government spending over the next ten years which would hopefully balance the country’s budget. The budget proposal will be relayed on the White House lawn on Tuesday afternoon.