
The EU plans to intervene in markets directly to curb rising energy costs, threatening to push the Euro area's economy into a deep recession.
2019-11-11 • Updated
Today the OPEC members are set to discuss in Vienna whether to prolong a production cut agreement reached in November 2016. An extension of the accord could potentially spark a rally in oil prices. In the following article, we will explicate how the deal has been executed, what are its effects. In conclusion, we will present 4 trading scenarios for the outcome of today’s OPEC meeting.
Last autumn the cartel pledged to shave 1.2 million barrels per day off its output, cutting it from 33.7m to 32.5m barrels per day. The deal was forged due to a surprise agreement between Saudi Arabia, Iraq, and Iran. Saudi were hit the most, they had to lower output by almost 500K per day, while Iraq agreed to reduce its oil production only by 200K. Iran was allowed to increase its production to restore its market share after the period of the US-led sanctions.
We must note OPEC demonstrated unprecedented discipline in the output cut deal execution. Among all the signing parties only Iraq, Angola and Algeria missed their targets slightly, while Saudi Arabia and UAE exceeded their commitments. The non-OPEC producers that supported the deal show were less disciplined with Russia missing its target and Kazakhstan, Malaysia actually boosting their production.
Overall, even the attempts to curb production kept oil prices above $50 for a quite long period of time. But some other factors have turned in a negative way for the OPEC striving to stem the global oil glut.
The EU plans to intervene in markets directly to curb rising energy costs, threatening to push the Euro area's economy into a deep recession.
US oil exports reached a record last week at five million barrels a day, according to Energy Information Administration data…
The past two years have seen the biggest swings in oil prices in 14 years, which have baffled markets, investors, and traders due to geopolitical tensions and the shift towards clean energy.
Last year was tough for the Japanese yen. USDJPY gained more than 30% over 2022, striking above 150 in October. While anticipation of slower Fed rate hikes pulled the pair below the 130 level at the start of 2023, the speculations over the destiny of BOJ’s yield control policy grabbed the attention of the Japanese assets in the middle of January. What lies ahead for traders of the Japanese yen?
Today, at 5:00 pm (GMT +2), the Bank of Canada will publish the Overnight Rate, which represents short-term interest rates, and is pivotal to the overall pricing of the Canadian Dollar in the global markets. Let's look at how the markets are faring ahead of the BoC rates release.
In a call scheduled for January 25, 00:30 am GMT+2, Microsoft will publish the company's earnings for the final quarter of 2022 and comment on the results, projections, and outlook for the nearest future of the company.
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