Expect more disruptions on Oil

Daily Analysis - 09/04/2019

Oil prices reached new heights


On Tuesday While oil prices rose to a more than 5 -month top. However, a top strategist said that a "potential for greater disruption" is due for the crude oil market. On Tuesday the chief strategist at JTD Energy Services, John Driscoll said that "It's almost like 2011, when (former Libyan dictator Muammar Gaddafi) was toppled. If ... Libya comes into play, that's only going to add more tightness to the market”.

Driscoll's remarks occurred due to the resume of violence in Libya. Libya is an important oil producer in the OPEC.

Gold gain vs U.S dollar

On Tuesday Gold prices grew and close to a more than 7-day high reached in an earlier session, while the popular greenback weakened after some soft U.S. economic data. U.S. gold futures rose 0.1% at $1,303.29 an ounce. Spot gold climbed about 0.2% to $1,299.58 per ounce following a touch of its highest level since last month at $1,303.60 in the previous session.


Greenback keeps losing momentum

On Tuesday the popular greenback was chained down by a sequence of soft U.S. economic data and earnings for commodity-affected rival currencies such as the CAD and AUD dollars which drew the support from an extended rise in crude oil prices. The dollar index versus a basket of six significant rival currencies crawled down 0.05% to 97.000 following a loss of more than 0.30% the previous session, recording its largest daily drop since last month.


Asian stocks went higher

Asia stocks recorded some improvement today while traders waited for developments like the resumed friction in the main oil producer Libya.

Hong Kong's Hang Seng index climbed about 0.30% with shares of Chinese tech giant Tencent scoring more than 0.50%.

Mainland Chinese shares advanced with the Shanghai Composite scoring 0.14%. The Shenzhen composite also raised more 0.6% while the Shenzhen component building around 0.73 %.


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