Oil Breaks through US$50

19 August, 2016

Oil prices broke through the US$50 a barrel mark today as speculation swarmed that Opec would move to freeze production at their upcoming meeting.

The price has now risen over US$8 a barrel in 2 weeks after Saudi energy minister Khalid bin Abdulaziz Al-Falih saidthat Opec would meet in the foreseeable future to discuss production cuts to stem the flood of oil in the market.

 “The market has taken solace from statements made by various oil ministers including officials from Saudi Arabia hinting at coordinated action by producers to freeze output. US inventory data released on Wednesday also bolstered bullish sentiment as the EIA reported a draw in gasoline and crude oil stocks for the previous week.” Noted Shakhil Begg, an analyst with Thomson Reuters.

A less than optimistic Fed minutes meeting this week is also supporting the oil price as more analysts are starting to predict that the US Central bank won’t raise rates until sometime next year,

"Crude prices continue to benefit from the weaker US dollar post-Fed minutes with markets continuing to price in a dovish global economic outlook. Chat from Opec about production freezes is probably continuing to support the price as traders race to catch the boat before it leaves  in the unlikely but profitable event that it does.” said Mike van Dulken, of Accendo Markets.

Although oil is having a strong run at the moment some fear there could be a sharp reversal in the price if Opec fails to halt output at their meeting as a positive decision has already been priced into the market.


Source link  
Can gold finally breakout?

The gold price received a much-needed boost yesterday after disappointing data from the US hit the market which cast doubts over the state of the US economy...

Is gold stuck in a bear market?

The US dollar has been on a stellar run over the last few weeks against most of the major currencies and commodities such as gold, which is why...

Dollar to continue its recent strength

It seems as if the market has finally woken up to the potential of the US dollar after the recent gains it racked up against most major currencies over the past week...


Rates in Australia going up or down?

The Australian dollar can’t seem to find a direction in today’s trading session after yesterday’s losses following the latest minutes from the Reserve...

Wage growth boosts pound

The British pound received another boost today against its US counterpart after a round of solid local data which follow’s on from news earlier in the week...

Gold remained largely range bound

Gold has remained largely range bound over the past 4 trading sessions but it seems as the today there is momentum gaining to the upside and the formation...


Stagflation a threat to US dollar

The US dollar jumped suddenly after yesterday’s release of better than expected inflation data and then suddenly reversed into negative territory which...

Gold made a run for the $1365 mark

If we look at the arrow on the weekly gold price chart we can see that a resistance point that was first encountered in around august of last year...

Gold awaits direction of Stockmarket

The gold price has remained in a tight range over the last 3 trading sessions as equity markets in the US continue to swing wildly and are now down...


In the past 24 hours Bitcoin has gained 2.44% and reached $8514.51. Open your trading account with the best cryptocurrency brokers on special terms today.

In the past 7 days the EUR/USD pair has lost -1.1691% and is now at $1.1809. Start trading and making money on Forex today.

In the past 7 days Ethereum has lost -0.38% and is now at $721.761. Have the most popular cryptocurrencies compared online 24/7.


Top Brokers offering Daily Forex Market Reviews


Forex Currencies Forecasts


Top 10 Forex Brokers 2018

# Broker Review
1easyMarketseasyMarkets89%
2FXTMFXTM88%
3HYCMHYCM86%
4FxProFxPro82%
5FIBO GroupFIBO Group81%
6FXCMFXCM71%
7HotForexHotForex70%
8XMXM69%
9Alfa-ForexAlfa-Forex68%
10Grand CapitalGrand Capital65%
  


Share: