Shale sector tries to reap the gains of the OPEC deal

6 December, 2016

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.

Italy Referendum

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.

Majors

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%.


Source link  
Dollar strengthens on Fed talk

The dollar retreated from four-and-a-half month lows after the speech of Fed’s chair Janet Yellen, who noticed a stable economic recovery...

Is it the end of the US stock rally?

The demand for safe haven assets is declining, as the US stock market that was doomed to collapse remained stable. Investors are ready to jump...

Was populism defeated in Netherlands?

The Dutch voters resolutely put a brake on the populism wheel spinning across the globe such as the right-centrist party of Rutte, as election results showed his primary opponent Geert Wilder went up by a sizable margin...


US oil vs. OPEC - who will win?

US crude oil stockpiles soared for the ninth week in a row according to the EIA report...

Is Euro gaining momentum?

As for the Euro, we have pulled away from a strong level of 1.0522 forming a bearish trap...

Investors sail to safe harbours

The Dollar index flattened as Trump gave a speech ahead of the Congress meeting. The president left the market without any clues on the taxation issue saying it is postponed till the cancellation of Obamacare, which has been the biggest reform in healthcare...


Where is black gold heading?

The Euro is slowly going down and this is not brought on by the Eurozone situation. Instead, this is fueled by the U.S. Dollar. Yesterday, Janet Yellen gave a speech...

Is the European Union viable and needed?

The US dollar has erased the advantage gained earlier this week against its major opponents, as uncertainty hovers over the outcome of the tet-a-tet between Trump and Shinzo Abe...

The best investments for hedging political risks

Gold approached the broken level of 1241.40 + 50% Fibonacci level. Now, the price slowed down right next to our resistance area, therefore...

  


Share: