What happened?
Great news for oil bulls! OPEC and its allied producers agreed to expand output cuts for the next month. Some insignificant exemptions were made for Russia and Kazakhstan, allowing them to boost output by 130,000 and 20,000 barrels a day in April, respectively. In total, OPEC+ will withhold about 7 million barrels a day from the market, which is equal to about 7% of global demand. Moreover, Saudi Arabia said it would continue reducing extra 1 million barrels a day on a voluntary bias.
What does it mean for trader?
Oil will keep rallying up in the next months! WTI oil has approached the high level unseen since January 2020 at $65.00. If it manages to break it, the way up to $70.00 will be clear. Support levels are at the recent lows of $59.00 and $52.00.
Besides, the US Senate passed Biden’s $1.9 trillion relief bill. As a result, the much-awaited stimulus should be finally approved by the end of this week. It should improve the overall market sentiment and push risk assets like gold further up.
This post is written and submitted by FBS Markets for informational purposes only. In no way shall it be interpreted or construed to create any warranties of any kind, including an offer to buy or sell any currencies or other instruments. The views and ideas shared in this post are deemed reliable and based on the most up-to-date and trustworthy sources. However, the company does not take any responsibility for accuracy and completeness of the information, and the views expressed in the post may be subject to change without prior notice.
Recommended Content
Editors’ Picks
EUR/USD edges lower toward 1.0700 post-US PCE
EUR/USD stays under modest bearish pressure but manages to hold above 1.0700 in the American session on Friday. The US Dollar (USD) gathers strength against its rivals after the stronger-than-forecast PCE inflation data, not allowing the pair to gain traction.
GBP/USD retreats to 1.2500 on renewed USD strength
GBP/USD lost its traction and turned negative on the day near 1.2500. Following the stronger-than-expected PCE inflation readings from the US, the USD stays resilient and makes it difficult for the pair to gather recovery momentum.
Gold struggles to hold above $2,350 following US inflation
Gold turned south and declined toward $2,340, erasing a large portion of its daily gains, as the USD benefited from PCE inflation data. The benchmark 10-year US yield, however, stays in negative territory and helps XAU/USD limit its losses.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.