The oil price looks optimistic. What are the reasons?
Crude slumps after strong third quarter as September OPEC output goes up
On Monday, crude sank, pausing for breath having posted 20% profits in the third quarter, after a poll pointed to a moderate soar in OPEC output in September.
American crude futures CLc1 lost 0.3% being worth $51.54 a barrel. On Friday, the American benchmark demonstrated its strongest quarterly revenue since the second quarter of last year and the longest streak of weekly profits since January.
Meanwhile, December delivery Brent oil futures dipped 0.4% trading at $56.57 a barrel. On Friday, November delivery Brent futures concluded 13 cents higher reaching $57.54 a barrel, showing a third-quarter revenue of approximately 20%, which is the greatest gain for five quarters. It happened to be the most impressive third-quarter soar since 2004.
The previous week Brent futures hit its highest value for more than two years and reported its fifth consecutive weekly profit. Apparently, it appeared to be the contract’s longest weekly bull run since June last year.
The European Central Bank will publish the monetary policy statement with the interest rate decision on January 21, at 14:45 MT time.
Joe Biden is going to unveil a Covid-19 relief package of about $2 trillion. After this announcement, the 10-year Treasury yield rose, adding support for the USD.
The US dollar’s weakness offered a boost to emerging-market currencies and oil.