Another small rally yesterday albeit slightly lost this morning on the back of a strong dollar. Traders tell me that the feel of the market stayed quite good yesterday and rallied again after the EIA stats which showed a build of 2.1m barrels, less than the 3.4m consensus. The FOMC was exactly as expected and today sees the US GDP figures which we assume they will have taken into account.
Opec Secretary General Abdalla El-Badri spoke at a conference in London yesterday and his words were a classic example of how to try and talk your own book. Whilst telling the market not to panic about crude prices and that there was no change to the fundamental supply and demand situation, he also slipped in a couple of complete fairy stories. He suggested that 50% of tight oil in the world is at risk at $85 oil which I don't agree with, neither do my former colleagues at WoodMack I understand. He also predicted that there would be no change in Opec output in 2015 and that all would be just fine, words like ‘wake up’ and ‘smell the coffee’ come to mind although one must remember that he is just the messenger...
Opec Secretary General Abdalla El-Badri spoke at a conference in London yesterday and his words were a classic example of how to try and talk your own book. Whilst telling the market not to panic about crude prices and that there was no change to the fundamental supply and demand situation, he also slipped in a couple of complete fairy stories. He suggested that 50% of tight oil in the world is at risk at $85 oil which I don't agree with, neither do my former colleagues at WoodMack I understand. He also predicted that there would be no change in Opec output in 2015 and that all would be just fine, words like ‘wake up’ and ‘smell the coffee’ come to mind although one must remember that he is just the messenger...
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Editors’ Picks
AUD/USD remains firm above 0.6600 ahead of RBA
AUD/USD maintains its bullish bias well and sound on Monday, extending the multi-session recovery past the 0.6600 barrier ahead of the key interest rate decision by the RBA.
EUR/USD keeps the constructive tone near 1.0800
EUR/USD started the week in a positive note amidst the Dollar’s inconclusive price action, altogether motivating the pair to attempt a move to the proximity of the 1.0800 region, where the 200-day SMA also converges.
Gold holds on to modest gains around $2,320
Gold trades decisively higher on the day above $2,320 in the American session. Retreating US Treasury bond yields after weaker-than-expected US employment data and escalating geopolitical tensions help XAU/USD stretch higher.
Bitcoin price holds above $63K as MicroStrategy tops BTC ownership list
Bitcoin (BTC) price recorded a rather bold two days this past weekend in a surge that saw millions in positions liquidated. However, the week is off to a calm start with altcoins sucking liquidity from the BTC market.
Stagflation warning: Service economy contracts as prices rise
In another stagflation warning sign, the U.S. service sector contracted in April even as service prices rose. The Institute for Supply Management's non-manufacturing PMI dropped to 49.4 in April, dipping from 51.4 in March.