OPEC extending production cuts

OPEC agreement is now on non-OPEC allies’ hands

Yesterday OPEC agreed to prolong the Oil production cuts for another nine months following numerous members of the group authorized a strategy intended to boost oil prices due to a retracting global economy.

The agreement now needs to be approved from the non-OPEC partners at a gathering today. According to Iraq’s oil minister there are not going to be any complications. Earlier, Bijan Zanganeh the Iranian Oil Minister said that he had “no problem” with promoting the oil supply reductions by nine months.

OPEC and its partners started decreasing the oil production two years ago, to limit the drop of the prices due to rising production from the U.S. which is now the world’s top producer. The cuts are operating at a capacity of about 1.2 million barrels per day.

Global fears are giving a boost to gold

On Tuesday the popular safe haven Gold went higher following a sharp drop in the previous trading session while traders worried about economic retardation. The drop came after the release of weak global manufacturing data. U.S. Gold futures went up 0.2% to $1,391.69 an ounce. Spot gold advanced almost 0.5% to $1,389.72 per ounce following a fall of almost 2% in the previous session. That was its largest single-day percentage drop since 2016.

NASDAQ and S&P registered opposite directions

On Tuesday morning the U.S. stock index futures went lower due to doubts over the possibility of a trade deal between the U.S and China.

Dow futures grew around 7 points, designating a negative start. NASDAQ and S&P registered a possibility to move in opposite directions.

Investors now are focusing on global trade progress following the U.S. and China agreement to refresh the trade discussions.

RBA cut its rates by 25bps

The Reserve Bank of Australia lowered its rates by 25 bps from 1.25% to 1.00% as anticipated and that pushed the AUD lower with AUD/USD falling to 0.6958 before reaching a higher level at 0.6979.

The report revealed that the RBA left the opportunity open for additional rate cuts. However, the phrase ("if needed") probably reveals that there is no need to act sooner than Q4 2019.

OPEC extending production cuts

OPEC agreement is now on non-OPEC allies’ hands

Global fears are giving a boost to gold

NASDAQ and S&P registered opposite directions

RBA cut its rates by 25bps

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