Is it possible for OPEC to maintains the oil cuts

Daily Analysis - 19/03/2019

US Crude going up and picking up momentum

On Monday oil increased due to hints that there are inventory drops at the delivery point for the U.S. crude futures and the support from the possibility of extended OPEC-led oil cuts.

OPEC and its partners gathered in Azerbaijan to control their crude supply cut agreement where they announced there is a strong possibility to exceed commitments in the following months.

The association agreed to cancel its next month conference, indicating that the next gathering of OPEC will not take place sooner than June.

On Sunday, Saudi Arabia warned the producers that they may require to lengthen the supply cuts beyond June.

Asia markets dropped while waiting for the FED

On Tuesday afternoon, Asia stocks were essentially exchanged lower due to the anticipations of a meeting by the U.S. Federal Reserve noted to start later in the day.

Japan's Nikkei 225 was more than 0.10% under while the Topix index also decreased by 0.2%.

Mainland Chinese shares closed the session essentially lower, with the Shanghai composite sliding 0.20% and the Shenzhen component declining more than 0.1 %. The Shenzhen composite was mostly flat.

In Hong Kong, the Hang Seng index slid 0.25% while shares of the Chinese Tencent also fell almost 0.50%.

Gold wins over weak Greenback

Last Friday Gold prices advanced, improving from the previous trading session's plunge. All this while the popular greenback dropped and increasing anxieties regarding retardation in global economic growth increased the need for the safe-haven bullion. The dollar slid 0.1% versus its primary rivals and was on course for its largest weekly decline since the last month of 2018.

Spot gold increased by more than 0.30% to $1,305.10 per ounce, following a drop of about 1% the day before. U.S. gold futures were up more than 0.1% at $1,305.09 an ounce.

Dollar is waiting for the FED meeting

On Monday, the Greenback was lightly traded versus a basket of currencies holding close to a 14-days low, while a warning concerning the American economy and expectations for a dovish Fed kept the USD weak.

The dollar index, which measures the greenback against the euro, yen, GBP and three other pairs, was nearly flat at 96.49. The index hit a 14-day low of 96.375 earlier in the session.

Upcoming Events

Time
Currency
Event
Forecast
Previous

9:30 GMT
GBP
Average Earnings Index +Bonus (Jan)
3.2%
3.4%

9:30 GMT
GBP
Claimant Count Change (Feb)
13.1K
14.2K

Tentative
GBP
UK Parliament vote on Brexit deal

Ready to trade
Open Account
Share:
Next: British lawmakers approved a Brexit delay