4 April, 2016
On Monday, oil prices weakened as Middle East producers’ aim to curb overproduction, while the U.S. output remained higher. Increasing concerns over Asia’s economic outlook declined on prices as well.
Furthermore, Iran returns on global oil markets after sanctions against it were raised in January. Meanwhile, Iran told the media that oil production, including its exports, will remain high until it hit the market position before the sanctions were imposed.
Major producers wished for the deal in order to limit ballooning output. Earlier last week, Saudi Arabia, a top exporter, mentioned to participate only if Iran, its rival, will took part too.
U.S. crude futures declined by about 1.06 percent, hitting $36.39 per barrel, while Brent crude lost 0.9 percent and settled at $38.33. Oil prices were dragged by 70 percent since 2014 led by a global glut.
Barclays said, "Macroeconomic concerns and high petroleum inventories are the oil market's ball and chain and are likely to keep the oil price between the mid-$30s and low $40s in Q2."
Subsequently, a few analysts are expecting the weakening greenback to stimulate oil demands mainly from importers that holds other currencies.
According to Morgan Stanley, "negative oil headlines, producer hedging at higher prices and bloated inventories" point out any upside in prices will be narrowed.
In addition, the U.S. production weighed on the global glut as it continues to increase in spite of sharp cuts in drilling for new reserves, including raising in bankruptcies.
Goldman Sachs mentioned, "The U.S. oil rig count dropped further this week, with a total 10 rigs idled,"
"The current rig count implies U.S. production ... would decrease by 705,000 barrels per day yoy on average in 2016, and by 375,000 barrels per day yoy in 2017," it added.
Market players kept their guards up as they await the US labor data report, a strong reading of which could urge the Federal Reserve to increase interest rates this month – a decision that would be bearish for non-interest bearing gold...
The US economic growth has been sluggish in the first quarter, although not as strongly as initially expected, amid an increase in spending on home architecture and a constant increase in inventory investment by business...
Oil prices increased more than 1 percent on Monday after Goldman Sachs stated that the market has ended for nearly two years of oversupply subsequent to a global oil disruptions and a market deficit...
The Australian and New Zealand dollars rallied against the greenback on Wednesday, but gains were anticipated to stay capped by lower prices of crude oil...
World stock markets rallied on Tuesday, fueled by a strong corporate earnings in Europe, including improvements on Greek debt talks and Japan’s new pledge in preparation to a weaker currency...
Gold prices ticked higher as the greenback slid to 16-month lows during the session earlier. On the Comex division of the New York Mercantile Exchange, gold delivery for June rallied at $1,303.85 per troy ounce, advancing $6.55 or 0.51 percent...
Analysts forecast that Germany DAX would hit 0.06 percent higher when the market opens, while France’s CAC 40 was anticipated to remain steady. Meanwhile, UK markets are closed due to a public holiday.
Shares in the U.S. plummeted following the decline of the stocks in the Asian market as the Bank of Japan left the interest rate unchanged...
Wall Street futures dropped on Friday after the Dow issued its first decline of more than 1% in two months, while investors are closely watching on data...