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Crude sags in Asia with financial market monitoring Nate in Gulf of Mexico
On Friday, crude prices went down in Asia following information that another tropical storm dubbed Nate is currently on its way to becoming a full hurricane as it comes up to the Gulf of Mexico with several offshore output sites already shut, which is also true for refineries.
In New York, November delivery crude futures sank 0.10% being worth $50.74 a barrel. In London, Brent futures went down 0.16% trading at $56.91 a barrel.
Overnight, oil managed to settle higher because worries over an uptick in American as well as Libyan production were compensated by negotiations of an extension to the OPEC-led deal to reduce crude output.
Crude revived from a 1% dip sustained from last trading session because Saudi King Salman’s visit to Moscow drove hopes that the two nations would negotiate a probable extension to the global pact to tame output.
In May, OPEC along with non-OPEC crude producers agreed to extend output cuts of about 1.8m barrels a day for 9 months until March next year.
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.