China has issued new oil product export quotas to allow oil companies to send surplus barrels overseas, particularly Sinopec, which has the highest volume among quota holders. While the exact quota volume remains undisclosed, oil companies are forecasted to export approximately 3.5 million metric tons of clean oil products in September, a 10% increase from August.
EUR/GBP: Brexit is eyed
2020-12-23 • Updated
The Brexit deal can be reached on December 24, according to media reports. EU-UK talks will continue trying to find a compromise on fisheries and the level playing field. The question is how much fish the EU will be allowed to catch in the UK waters. Last week, the UK pressed the EU to agree on a 60% cut of the current value, but the EU has rejected to accept more than 25%. Yesterday, the UK offered a reduction of 30%, but the EU refused to take this offer too.
Brexit: now or never
Some analysts claim that if an agreement is not made by December 24 then the Brexit talks will be expected to continue after Christmas. The GBP will stay volatile all this time, while the major track will be defined only after the final Brexit decision.
Not only Brexit but also new virus strain
However, Brexit is not the only problem that the UK faces these days. The new Covid-19 strain has been found in the UK, which is 70% more contagious than the previous strain. Vaccine makers believe their shots will be efficient against the new virus variant as well, but the performing tests should be made at first to confirm this information.
The GBP has been rising during the day as investors have hopes for the breakthrough tomorrow. EUR/GBP is moving down towards the 200-period moving average of 0.9000. This support is really strong as the pair has failed to break it many times so far this month, that’d why the pullback to the upside is expected in this area. The breakout of 0.9000 will drive the pair to the low December 1 at 0.8950. Resistance levels are 0.9090 and 0.9130.
Thanks to the incredible advancements in horizontal drilling and fracking technology, the United States has experienced a mind-blowing shale revolution. They've become the heavyweight champion of crude oil production, leaving Saudi Arabia and Russia in the dust. They even turned the tables and became net exporters of refined petroleum products in 2011.
Oil prices rebounded slightly on Friday but are still expected to show losses for the week due to concerns about slowing growth in the US and China. US crude futures rose 2.7% to $70.41 per barrel, while the Brent contract increased by 2.5% to $74.33 per barrel.
The past several weeks have been a real triumph for the bulls in the oil market. The Brent spot price grew by 8.5% during the last month.
Gold prices are rising for three consecutive days ahead of the Federal Reserve (Fed) interest rate decision, which is expected to remain unchanged due to declining inflation and a positive economic outlook. Investors are keen on the Fed's interest rate guidance, fearing a hawkish stance that could trigger market risk aversion.
Amid concerns of a Chinese economic slowdown, reports of declining investment often overlook China's efficient investment strategy in emerging sectors for long-term growth. China has taken measures to stabilize foreign and private sector investments, like reducing the reserve requirement ratio to boost investor confidence.