The prices extend gains after OPEC’s output cut deal brings short-term optimism. Forward market shows that the US oil producers are rushing to lock the profit, selling oil contracts for above $50 a barrel at the start of 2018. As US shale sector is rushing to take advantage of the OPEC’s deal the expectations of supplies coming in balance with the demand can be battered. Depending on the recovery pace of the US output. Brent cut through $55 per barrel, WTI climbed above $52 first time since July of last year. Futures on Oil with settlement in August 2017, at $55.58 per barrel and June 2018, at $55.23. This indicates that the market is turning from recent counting trading to backwardation due to the US shale effects described above.
No Populism in Austria
The Austrian voters strongly deny their trust to Norbert Hofer, a nationalist with the anti-immigration program, aiming to ride the wave of populism capturing the US and other Western democracies. Results showed that Norbert Hofer, the candidate of the anti-immigrant Freedom Party, lost elections in May getting one percent less that was needed for a win.
Voters reject the Prime Minister Renzi’s reforms leading to his resignation. The European currency plunged 0.44%, paring declines later in the session. Polls show an early election in Italy would see that the anti-euro Five Star Movement would sweep into power. Other European currencies, Danish Krone and Polish Zloty, fell 0.5 and 0.7% respectively on the vote outcome.
The European currency traded in green, as the political upheaval in Italy, had limited impact on the currency. Pound renewed upward movement on the upbeat Services PMI and speculations overpaid access of the UK to EU single market, which was denied by Foreign Secretary Boris Johnson. US currency retreats from the peaks as Trump’s optimism vanishes and November Payrolls showed no significant deviation from the forecast (178K jobs added, unemployment fell to 4.6%). Hourly wages declined the first time since the end of 2014. Rate hike can´t be taken as a catalyst for growth, as it’s fully priced in. The Japanese Yen extends a losing streak as USD/JPY heads to test the level of 114.50. The Australian dollar dropped 0.47%.Publication source