Oil drops as OPEC dependent on Russia for the supply cut decision

Daily Analysis - 07/12/2018

Oil prices fell on Friday,

On Friday oil prices dragged down by the fact that OPEC's decision, that is expected to cut supply, will be delayed because they are awaiting support from non-OPEC but important player Russia.

International Brent crude oil futures dropped under $60 per barrel quickly in the session, exchanging at $59.49 per barrel that is, down 56 cents, or 0.9% from their last conclusion.

U.S. West Texas Intermediate (WTI) crude futures were down at $51.24 per barrel, below 25 cents, or 0.5%. The drops began after Oil collapsed by more than 2% the previous trading session, with the OPEC finishing a conference at its base in Vienna, Austria, on Thursday without publishing an arrangement to cut crude supply, rather of planning to discuss the subject on Friday.

Bitcoin lost more than 10

Bitcoin dropped more than 10% versus the greenback in less than a full day by Friday afternoon through Asian trading session, signaling further drops for the giant among the cryptocurrency world.

This month was especially cruel for the popular cryptocurrency because it lost more than 8% on the first day of the month as well. Bitcoin exchanged at $3,367.49 on Friday, dropping 11% over the last 24 hours, according to data from popular site Coindesk. According to CNBC an analyst said through an email that the cryptocurrency world "definitely seems to suffer." "The market is in a general bearish trend that doesn't seem to be letting up driven by what seems to be a general negative sentiment towards crypto," said Zennon Kapron, director at financial technology consultancy Kapronasia. "As the market is heavily retail driven, it's very much at the mercy of group sentiment which causes huge swings." And he added "Without any positive drivers in the near future, this could continue well into 2019,"

Greenback is weakening once more

The popular greenback tried to overcome the losses that witness in Asian trade yesterday driven by new assumptions that a generally anticipated rate hike late this month may be the last before FED pause its tightening sequence.

Traders have already been warned by the recent intense declines in U.S. Treasury yields, with an inversion of the yield curve indicating a clear economic retardation or in the worst case scenario a recession all over again. The important November U.S. nonfarm payrolls, unemployment and wage data will be in the center of the attention and are due to be published later today. The search of clues on how the world's top economy is doing must be mandatory.

Dow rebounds from its last sharp drop

On Thursday stocks closed completely off their trading session lows following news revealed that the FED will be probably contracting its monetary policy at a slower speed than previously anticipated.

The Dow Jones Industrial Average finished 79.40 points under at 24,947.67 after falling almost 800 points. Delores Rubin, a senior equities trader at Deutsche Bank Wealth Management said "What this week and a half show is an extraordinary sensitivity to headlines, more so than usual," "It's been very difficult to navigate the waters so far."

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