Malcolm Graham-Wood
Independent Analyst
The Russian Energy Minister has this morning in an interview on CNBC said that they are fully behind the Opec initiative to cut production. He said that Russia ‘is reducing production in stages’ and that by the end of April would have reached their target of 300/- b/d and that the cut is up to 200/- b/d at the moment. Overall the picture looks good too, Reuters claim that Opec production is down to 32.01m b/d which shows a 93% degree of ‘adhesion’ and getting better. If these are your yardsticks for the oil price then, at least in the short term it is time to close off those bearish bets, they are exposed.
Yesterday’s inventory stats were a mixed bag but for choice better than market expectations. Crude stocks built but not by as much as expected, 867/- vs f/c of 1m barrels was certainly tolerable for the market. Products drew big time again, gasoline was down 3.7m barrels against expectations of 1.9m and distillates fell 2.48m b’s, twice the guess. With April on the doorstep and time for refiners to step up to the plate it would be a reasonable guess that throughput will rise and increased runs will draw more crude.
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
USD/JPY holds near 155.50 after Tokyo CPI inflation eases more than expected
USD/JPY is trading tightly just below the 156.00 handle, hugging multi-year highs as the Yen continues to deflate. The pair is trading into 30-plus year highs, and bullish momentum is targeting all-time record bids beyond 160.00, a price level the pair hasn’t reached since 1990.
AUD/USD stands firm above 0.6500 with markets bracing for Aussie PPI, US inflation
The Aussie Dollar begins Friday’s Asian session on the right foot against the Greenback after posting gains of 0.33% on Thursday. The AUD/USD advance was sponsored by a United States report showing the economy is growing below estimates while inflation picked up.
Gold soars as US economic woes and inflation fears grip investors
Gold prices advanced modestly during Thursday’s North American session, gaining more than 0.5% following the release of crucial economic data from the United States. GDP figures for the first quarter of 2024 missed estimates, increasing speculation that the US Fed could lower borrowing costs.
Ethereum could remain inside key range as Consensys sues SEC over ETH security status
Ethereum appears to have returned to its consolidating move on Thursday, canceling rally expectations. This comes after Consensys filed a lawsuit against the US SEC and insider sources informing Reuters of the unlikelihood of a spot ETH ETF approval in May.
Bank of Japan expected to keep interest rates on hold after landmark hike
The Bank of Japan is set to leave its short-term rate target unchanged in the range between 0% and 0.1% on Friday, following the conclusion of its two-day monetary policy review meeting for April. The BoJ will announce its decision on Friday at around 3:00 GMT.