Oil inter-markets: Sees fresh sign of life, will it last?
|After having witnessed a massive sell-off a day before, oil prices are seen breathing a sigh of relief during the European session this Friday.
The bulls appear to fight back control and cheer Russia’s pledge to freeze oil output after the Russian oil minister said earlier on the day that oil output freeze is needed and he would put forth some proposals during his meeting with Saudi this weekend.
Moreover, stalled buying in the US dollar across the board, also seems to lend support to the tepid-recovery in oil prices. The USD index now consolidates the upside near seven-month tops reached at 98.59 levels. A stronger greenback makes USD-denominated commodity more expensive for foreign buyers and vice-versa.
Further, the recovery in the commodity can be also attributed to a fresh bout of profit-taking ahead of the much-awaited US rigs count data from Bakers and Hughes Oilfield Services Company.
Meanwhile, the black gold remains largely unaffected by persisting risk-off market profile, as suggested by a bounce in the VIX futures (CBOE Volatility Index), fear gauge, which rallies almost +2.50%.
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