Oil drops 1.1%, hits 10-day low

Oil hits 10-day low in Asia.
Rising US oil output could counter OPEC output cuts.

Omkar Godbole FXStreet Contributor

Oil prices on both sides of the Atlantic fell more than 1 percent, reportedly due to fears that rising US shale output could offset the OPEC-led deal to clear a supply glut.

WTI oil hit 10-day low of $62.84 a few minutes go and was last seen trading at $63.10/barrel. Meanwhile, Brent also hit a 10-day low of $68.31 and was last seen trading at $68.50/barrel.

In a monthly report released yesterday, the Organization of the Petroleum Exporting Countries (OPEC) said rival producers are likely to boost supply by 1.15 million barrels per day (bpd) this year, up from 990,000 bpd expected previously.

OPEC's upward revision of rivals' supply forecast came a day after the Energy Information Administration (EIA) comments that the shale oil output is likely to rise by 1.8 million barrels per day (bpd) over the next year.

Ahead in the day, oil could remain on the back foot, dragging energy stocks lower across the board. In the US session, Baker Hughes weekly inventory report could move oil prices.

Author

Omkar Godbole

FXStreet Contributor

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

EUR/USD flirts with daily highs, retargets 1.1900

EUR/USD regains upside traction, returning to the 1.1880 zone and refocusing its attention to the key 1.1900 barrier. The pair’s slight gains comes against the backdrop of a humble decline in the US Dollar as investors continue to assess the latest US CPI readings and the potential Fed’s rate path.

GBP/USD remains well bid around 1.3650

GBP/USD maintains its upside momentum in place, hovering around daily highs near 1.3650 and setting aside part of the recent three-day drop. Cable’s improved sentiment comes on the back of the Greenback’s irresolute price action, while recent hawkish comments from the BoE’s Pill also collaborate with the uptick.

Gold holds above $5,000 as bears seem hesitant amid Fed rate cut bets

Gold edges lower at the start of a new week, though it defends the $5,000 psychological mark through the Asian session. The underlying bullish sentiment is seen acting as a headwind for the bullion. However, bets for more rate cuts by the Fed, bolstered by Friday's softer US CPI, keep the US Dollar bulls on the defensive and continue to support the non-yielding yellow metal as the focus now shifts to FOMC Minutes on Wednesday.

Week ahead: Data blitz, Fed Minutes and RBNZ decision in the spotlight

The US jobs report for January, which was delayed slightly, didn’t do the dovish Fed bets any favours, as expectations of a soft print did not materialize, confounding the raft of weak job indicators seen in the prior week.

Global inflation watch: Signs of cooling services inflation

Realized inflation landed close to expectations in January, as negative base effects weighed on the annual rates. Remaining sticky inflation is largely explained by services, while tariff-driven goods inflation remains limited even in the US.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.