Congratulations! Gold has just opened a new era... or, rather, reopened...
Crude extends revenues as Saudi promises export curbs
On Tuesday, crude prices extended revenues after Saudi Arabia promised to curb exports from next month, while OPEC called on several participants to boost compliance with output cuts for the purpose of reining in global oversupply and tackling flagging prices.
Gains were also backed by Halliburton's executive chairman, who told that the surge in North American rig count was demonstrating signs of plateauing, thus clouding a boom in American shale crude output.
September delivery Brent crude futures surged 0.6% being worth $48.90 a barrel, having settled up 1.1% on Monday.
As for US West Texas Intermediate crude futures, they ascended 0.7% trading at $46.65.
At Monday’s ministerial meeting in St. Petersburg, Saudi Energy Minister Khalid al-Falih told that OPEC along with non-OPEC participants were committed to extending their currently existing deal to reduce oil output by approximately 1.8 million barrels per day beyond March next year if required.
The market is resilient ahead of the speeches of Fed’s Powell and ECB President Lagarde, but there are still interesting movements.
The uncertainty over US fiscal stimulus and Brexit, and also rising new virus cases deteriorated the market mood. That’s why we can expect the further rally of the US dollar and the fall of riskier assets today.
The market sentiment is mixed, but there are still interesting movements on the market.