Oil is going up while OPEC cuts may be coming

Weekly Report - 09/09/2019

Oil is going up while OPEC cuts may be coming


On Monday Oil surged upon expectations that the world’s biggest oil producer, Saudi Arabia, will remain a strong supporter for more output reductions by OPEC. Prices rose for a fourth consecutive day and gained more positive momentum after statements from the energy minister of the United Arab Emirates’ that OPEC and its partners are dedicated to supporting the crude market. US West Texas Intermediate gained 57 cents at $57.08 a barrel. Brent went up 53 cents, to $62.06 a barrel

The Week that was

On Friday, following the announcement of poor jobs data, US stocks ended with not much of a change. However, the optimism regarding US-China trade relations is still the major driver. The S&P 500 rose just 0.1% to close at 2,978.70.  The Dow Jones Industrial Average finished the day up 69.30 points at 26,797.45, while the Nasdaq Composite fell 0.2% to 8,103.06. On Thursday China’s Ministry of Commerce announced that Liu He, China's best trade negotiator, talked over the phone with the US Treasury Secretary Steven Mnuchin and Trade Representative Robert Lighthizer and that they agreed to a meeting on October for fresh negotiations.


Main Focus This Week

 On Monday the famous euro remained under tension before a European Central Bank conference on Thursday. Policymakers are assumed to pass a new stimulus to support the fragile economy. More intense than normal anticipations for an ECB loosening comes because other global central banks are using the same strategy. On Friday the People’s Bank of China decreased the amount of cash that banks need to keep as reserves. On Monday after China’s easing and a shock drop in exports reduced yuan's strength. The main focus this week is on the influence the ECB has over the global markets.


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