5 February, 2016
While market participants are waiting for the release of NFPR (Non-Farm PayRolls), oil prices are gradually declining since the opening of the trading day and at the beginning of the European session.
On Thursday, Saudi Arabia lowered export prices of the high quality crude oil for Europe and Asia. Saudi state company Arabian Oil Co. (Aramco) has published official list of selling prices, which showed that the price of some oil grades have been reduced from 0.2 to 0.75 USD per barrel.
For Iran, the European region is also of great importance; the country is going to increase exports of oil to Europe after lifting of the Western sanctions. Iran has already announced that it will not reduce oil production until its exports exceeds the current level (which is 1.1 million barrels per day), by 1.5 million barrel.
Russia has also reached the highest levels of oil production since the Soviet times and the rumors about the upcoming negotiations between Russia and Saudi Arabia on the reduction of oil production have been belied by OPEC representatives.
Demand exceeds supply in the oil market. According to the US Department of Energy, US stocks of crude oil and oil products have grown by 7.7 million barrels over the last week, which is over 500 million barrels for the first time over 80 years.
At the close of trading yesterday futures for Brent in ICE Futures Europe fell in price by 1.7% up to the level of 34.46 USD per barrel. Yesterday’s price spot dropped to 34.30. Due to the increase of oil production in the world, slowdown of the global economy and increasing completion in the oil market, the price of oil goes back to the downtrend. If the data on NFPR (Non-Farm PayRolls) will be higher than expected, interest rate in the USA can be increased in March. In this case the USD will strengthen while oil price will go down to the recent lows of 27.00.
US stock indices went up on Wednesday after the release of the minutes of the US Fed meeting in January, which was devoted to the US monetary policy. Dow Jones Industrial Average rose by 1.6%, Nasdaq Composite - by 2.2%.
Past week was marked by a two-day speech of Janet Yellen, the head of the US Fed. Mrs. Yellen did not give a straightforward answer regarding the interest rate increase at the US Fed meeting in March...
On Thursday, the price of gold strengthened by 4% and reached its year highs. The price has been growing amid an increase in demand for safe-haven assets, such as gold and the Yen...
Yesterday, US Ministry of Energy announced about unexpected decline of oil and oil products reserves by 754 million barrels over the last week. Spot-price of crude oil Brent has grown over 31.80 USD per barrel...
Over the past 2 weeks the Yen has significantly strengthened its positions against the USD due to the increasing demand for the safe-haven currency. Mixed macro-economic data on the US economy has decreased a chance that the US Fed will tighten monetary policy...
The currency pair is traded at the strong level of 1.0960 –1.1060. In case of maintenance and testing of the level and respective confirmation (for example, a pattern Price Action), we recommend to open long positions. Stop order can be placed below the signal line...
Despite that fact that the data on Non-FarmPayRolls was below the forecast (151 000 against the forecast of 190 000 and 262 000 new jobs in December), the USD has grown against the major currencies. The rise was caused by the other data on the US labor market in January...
API (American Petroleum Institute) report, released this Tuesday, showed that last week US oil stocks rose by 3.8 million barrels. Obviously, it was a bad news for oil prices, as heavy stocks of oil in the USA creates situation when supply outruns demand in the world market...
Today, the Global Dairy Trade will publish price index for dairy products, reflecting weighted average of the change in price in percentage. For the economy of New Zealand, which is the largest exporter and supplier of the dairy products to the global market, dairy prices are of great importance...