Oil rises more than 1% in anticipation of more rate cuts

Weekly Report - 02/12/2019

Oil rises more than 1% in anticipation of more rate cuts


On Monday oil surged more than 1% while indications of increasing manufacturing action in China led to growing fuel requests, and signs that OPEC may extend output cuts at its conference this week showed supply may contract next year. West Texas Intermediate (WTI) futures increased 91 cents, to $56.07 a barrel, having increased by more than $1 earlier. Brent crude futures climbed 76 cents, to $61.24 a barrel.

Week that was

Last Friday, the famous Gold was restrained, however, it kept to its course and moved towards its worst month in three years. All that while expectations for a fundamental US-China trade deal buoyed excitement for riskier assets and the greenback. Spot gold was fixed at $1,458.59 per ounce casting 0.3%. U.S. gold futures rose 0.3% to $1,457.79. For the current month, gold has fallen almost 4%, while belief concerning a deal between Beijing and Washington discouraged demand for the safe haven metal.


Main Focus This Week

Regarding the ongoing trade war between the US and China, there’s yet no indication of positive development on the phase 1 deal, in spite of the positive updates from both sides. Another week of positive chatter but no actual real development may test the broader market… In the early hours of Thursday, Trump confirmed the HK Bill to defend HK protesters. China’s response will be the fundamental driver. Another important topic to watch will be the UK General Election that is going to take place in just 11 days. Expect the Pound to be especially susceptible to the evaluation polls, forecasts, also debates and interviews.


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