Positive risk sentiment yet Oil under pressure – What's next?
|Important data
Oil prices seem to fall further and oil and gas companies are cutting jobs as profit margins weaken. US shale oil is being hit even harder due to the high prices in production. Since the peak in prices during the invasion of Russia in the Ukraine prices have now halved, which however, in most cases can’t be seen at the pump. OPEC+ is moving a slightly different way now to gain back market share by also rivals with higher costs as well as non- OPEC countries. As prices might fall further companies might get under further pressure in general.
Market talk
Equities continue their pace to the upside as the Dollar is still giving way to other currencies. In particular the falling trend in the GBPAUD currency pair might indicate that lower prices could be on the horizon. On the other hand, the downtrend in oil also supports the view that the demand from the economy is still expected to weaken. The rise in Gold prices might be due to the weakness of the Dollar but also due to the fading positive risk sentiment in stocks. After the recent correction in the crypto market it seems that the upside in most tokens is taking place again. Not only Bitcoin is rising further but also altcoins might offer even more momentum in the coming days ahead, as long as US indices push higher.
Tendencies in the markets
- Equities positive, USD weaker, BTC positive, ETH sideways, oil weaker, Silver sideways, Gold positive, JPY weaker.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.