The oil price looks optimistic. What are the reasons?
Crude prices stand still in Asia as markets look to producers' meeting
On Friday, crude prices settled down during Asia trade having hit month-long peaks overnight and ahead of a gathering of the crude producers on Monday.
September delivery West Texas Intermediate futures were intact, losing no more 0.02% and keeping to $46.91. As for September delivery Brent crude futures, they also dipped just 0.02% being worth $49.29.
On Thursday, crude prices soared after American crude inventories dived 4.73 million barrels by July 14, as the EIA posted. As for gasoline inventories, they shrank by 4.4 million barrels.
Thursday’s crude soar, which took the commodity’s prices to peaks not observed since June 7, was also driven by hopes that crude producers might reduce supplies. OPEC as well as non-OPEC producers are expected to meet in Russia on Monday and traders are waiting for any clues that Saudi Arabia, the leading producer of crude, might cut its output.
USD’s rally takes a pause, while riskier assets are modestly rising.
We are now past the middle of January, and this means that the largest US companies will report their earnings for the fourth quarter and many of them will provide the results of the entire 2020.
Poor US data, slow vaccine distribution, rising virus cases worsened the market sentiment and underpinned safe-haven currencies like the USD, and JPY.