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.
GBP dropped on Brexit impasse
2020-12-07 • Updated
The European Union and the United Kingdom haven’t been able to reach the Brexit deal so far. The EU Chief Negotiator Michel Barnier publicly refused that both sides are getting closer to any progress. The main sticking points are access to UK fishing waters and the level playing field (a set of rules that stop businesses of one country from having competitive advantages in other countries).
According to Sun, Prime Minister Boris Johnson is ready to abandon EU-UK negotiations. If it really happens, the UK economy will collapse in the short term: GDP is expected to fall by 2%. In addition, taxes on exports to the EU will rise enormously: for automakers by 7%, while for farmers – by 35.4%. Obviously, it will be better for both sides, if they can reach a compromise.
The prospect of the no-deal Brexit pushed the pound down. Just look at the huge swing down of GBP/USD on the chart below!
GBP/USD dropped below the key support of 1.3300. After the breakout, it retraced back to this level, but it’s likely to bounce off 1.3300 and continue falling further. The move below 1.3200 will drive the pair down to the low of November 12 at 1.3120. In the opposite scenario, if it jumps above the resistance of 1.3300, the way up to the recent highs of 1.3400 will be open. Follow news about Brexit further not to miss important developments that will impact the pound!
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.
Welcome to October, the tenth month of 2023. For this installment of What to Trade, I have handpicked a few of my favorite trade ideas for the month. Let’s go over a few of them.
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.