Oil eyes 2015 lows after OPEC lifts output ceiling

Omkar Godbole FXStreet Contributor

FXStreet (Mumbai) - Oil prices fell sharply on Monday and are closing-in on 2015 lows after the OPEC lifted its daily output quota on Friday.

The OPEC’s move indicated that the group is likely to continue its strategy of defending the market so long as the non-OPEC members maintain their production levels.

At the time of writing, the WTI Jan futures were down 2.9% at USD 38.83/barrel. Brent futures were down 1.9% at USD 42.18/barrel.

As per the Reuters reports, Saudi Aramco Chief Executive Amin Nasser said at a conference in Doha on Monday he hoped to see oil prices adjust at the beginning of next year as unconventional oil supplies start to decline. The comments again underscored the fact that the kingdom is relying on market adjustment to support prices rather than cut production.

Meanwhile, the data on Friday showed U.S. rig count numbers were down by 31 month-on-month to 760 rigs. However, the data got overshadowed by the OPEC decision.

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

AUD/USD extends decline to fresh monthly lows below 0.7100

AUD/USD trades south of 0.7100 early in the Asian session on Thursday, as the US Dollar soared following the Federal Reserve's monetary policy announcement. The Fed delivered a 25 bps rate hike as expected, while policymakers expressed concerns about inflation leading to bets of additional hikes before year-end.

USD/JPY flirts with 156.00 after Fed's hawkish hike

USD/JPY trades at fresh weekly highs around 156.00 early on Thursday, as the US Dollar soared following the Federal Reserve's monetary policy announcement. The US central bank hiked the benchmark rate by 25 bps as expected, while Chair Kevin Warsh delivered quite hawkish comments in the press conference that followed the decision.

Gold dips towards $4,250 in the Fed's aftermath

Gold erased intraday gains and turned negative following the Federal Reserve's decision to hike rates by 25 bps as expected. The XAU/USD pair briefly surpassed the $4,360 level, now accelerating its slide towards the $4,250 price zone. Hawkish words from Chair Kevin Warsh fueled bets for additional hikes before year-end.

Fed raises 2026 interest rate forecast to 4.1%, lifts PCE inflation projections

The Federal Reserve's (Fed) latest dot plot projections, released by the Federal Open Market Committee (FOMC) on Wednesday, show policymakers now expect interest rates to stand at 4.1% by the end of 2026, up from 3.8% in June.

Fed recap: One hike down, more to come? The Fed’s new rate path says yes

The Federal Reserve (Fed) raised its Fed Fund Target Range (FFTR) range by 25 basis points to 3.75%-4.00% in a unanimous decision, saying the move would support a timelier return to its 2% inflation goal.

How Japan became the World's Banker and why that era may be ending

Japan's ultra-low interest rates helped finance trillions of dollars in global investments for more than a decade, making the Japanese Yen one of the world’s cheapest sources of funding. With the Bank of Japan expected to tighten policy again this week, that advantage may be entering a new phase. While most major economies raised interest rates, Japan remained the world's outlier.