Malcolm Graham-Wood
Independent Analyst
Friday saw further strength in the oil price on the last day of the month that was to prove one of the best in percentage terms for a long time. With WTI eventually putting in a 3% rise on the month and Brent an impressive 19.7% hike, things appear to be looking up but it could have been better as the Baker Hughes rig count wasnt brilliant. With 43 rigs being junked, 33 of them oil rigs, crude bulls wanted a higher figure and the CFTC figures showed that money managers have actually cut their long US crude futures positions in the last few days.
It is also worth noting that some product prices have shifted up sharply due to a combination of shortages and weather conditions and the strike still continuing, this means that US diesel for example has surged ahead of its contract expiry. It is ironic that in some cases refiners have imported more Brent type crude to process in preference to the WTI in which stocks are building to significant levels.
Finally it looks like Ed Davey and the UK Government are taking on the formidable Mikhail Fridman who in an attempt to diversify his portfolio away from Russia has bought RWE assets including those in the North Sea, over at DECC they are worried that further sanctions on Russia might at some stage leave operations in the area uncontrolled, something one can have some sympathy with.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
EUR/USD flirts with daily tops near 1.0730
The continuation of the selling pressure in the Greenback now lends further oxygen to the risk complex, encouraging EUR/USD to revisit the area of daily highs near 1.0730.
USD/JPY recovers toward 157.00 following suspected intervention
USD/JPY recovers ground and trades above 156.50 after sliding to 154.50 on what seemed like a Japanese FX intervention. Later this week, the Federal Reserve's policy decisions and US employment data could trigger the next big action.
Gold holds steady above $2,330 to start the week
Gold fluctuates in a relatively tight channel above $2,330 on Monday. The benchmark 10-year US Treasury bond yield corrects lower and helps XAU/USD limit its losses ahead of this week's key Fed policy meeting.
Week Ahead: Bitcoin could surprise investors this week Premium
Two main macroeconomic events this week could attempt to sway the crypto markets. Bitcoin (BTC), which showed strength last week, has slipped into a short-term consolidation.
Five Fundamentals for the week: Fed fears, Nonfarm Payrolls, Middle East promise an explosive week Premium
Higher inflation is set to push Fed Chair Powell and his colleagues to a hawkish decision. Nonfarm Payrolls are set to rock markets, but the ISM Services PMI released immediately afterward could steal the show.