The oil price looks optimistic. What are the reasons?
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.
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The Canadian central bank will make a monetary policy report and announce interest rates on Wednesday, January 20, at 17:00 MT time. Also, the BOC press conference will be held later.
USD’s rally takes a pause, while riskier assets are modestly rising.