Crude Oil Nears 5-Week Low

With the semi-annual Vienna meeting rapidly approaching, OPEC is expected to make a decision on extending its output cut deal on May 25^th.  However, analysts are becoming increasingly sceptical that any extension of the OPEC deal at current levels may not be enough to shift global inventories to more normalized levels.

Data released Friday by US oil services giant Baker Hughes showed a rise in active oil rigs for a 15^th consecutive week, adding to concerns that domestic production will gradually follow the operational rig count higher.

Also weighing on investor sentiment is the ongoing recovery in Libyan oil production, with the National Oil Company reporting that production has risen to its highest level since December 2014.

Brent July futures were last seen around $51.37 a barrel as the immediate trend remains bearish, with a dip below the $50-mark looking increasingly likely.

According to preliminary data from the Federal Statistical Office, retail sales in Switzerland grew for a second consecutive month in March at a pace that was the strongest in nearly three years.

Retail sales increased 2.10% year-on-year, compared to the 0.70% growth recorded back in February, easily topping market expectations of a figure close to 0.50%. The rate of growth was the fastest since June of 2014.

On a monthly basis, retail sales edged 0.70% higher in March with sales of food, beverages, and tobacco rebounding by 0.80% after falling -1.50% in February. Non-food sales soared 4.10%, versus the 1.60% gain posted in the previous month.

However, the pickup in fundamentals was not enough to move the needle on the Franc, as USDCHF trades largely unchanged early Tuesday, trending just below a one-week high around 0.9955.