Oil futures advanced during the Asian session, after a quick dip on Monday. Output cuts are in focus, and investors are trying to cash in on any relevant rumors that circulate the market.
WTI futures traded on Nymex with April settlement rose by 0.61%, failing to occupy the $33 level, later recoiling back to 32.50. Brent jumped as high as 35.68 level, but surrendered its gains, declining to 35.15.
Oil traders will be focused on Crude stockpiles data, which should be released on Tuesday and Wednesday (API and EIA reports), as concerns over world surplus still mount pressure on the market. There is also a possibility of Opec and Non-Opec countries signing a pact – that is also something everyone is following closely right now. In case of successful outcome Oil prices may finally start climbing.
The commodity prices fell last Friday’s session ended, after spiking up to two-months high, as investors took profits, expecting an obvious bounce. The upturn could be attributed to Baker Hughes Rig Count report, according to which, the number of Oil rigs reduced by 13, from 413 to 400 rigs. The glut on the oil market seems to be slowly easing.
The Venezuelan head of Oil, Del Pino, reported on Thursday that his country, Qatar and two biggest Oil producing nations, Russia and Saudi Arabia, will hold a meeting in the middle of March, where output talks will be resumed.
The rally on the European equity markets has stopped with Oil declines, Euro Stoxx 50, DAX and CAC 40 lost around 1%, FTSE 100 dropped by 0.74 percent. Asian indices tumbled because of the weakening Yuan and strengthening Yen, Nikkei 225 lost 1.00%, TOPIX dropped by 1.02%, Hang Seng is down by 1.30%, CSI 300 dipped by 2.39%. Local bond markets blossom, as stock panic sparks demand for low-return safe assets. The slump of USD/JPY renewed with more intensity, the pair dropped by 0.87%, as safe havens are again in great demand.
USD/RUB started this week below Friday’s closing price, but the pair is set for gains as Oil stops growing for now.
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