Oil: Fragile demand keeps the offtake from refiners low – ANZ

FXStreet Team FXStreet

New mobility restrictions are challenging the outlook for oil demand. Traffic and flight data are showing a clear deceleration, which is likely to continue through winter. The prospects of weaker demand for oil products and thinner margins are keeping the offtake from refiners low, per ANZ Bank.

Key quotes

“Surging COVID-19 case numbers are hindering the recovery of road and aviation transport, with developed markets seeing notable declines in traffic levels. Fresh mobility restrictions in Europe and some US states leave little hope of short-term improvement.

“Weaker refinery margins are not helping, as offtake from oil refiners remains subdued. Softening gasoline demand should restrain any pick-up in refiners’ demand.”

“There are early signs of supply coming back. US oil and gas rig counts are increasing, and Libya is restoring production. OPEC+ meets on 30 November. Should demand keep weakening, we believe the group will delay the production quota increase until 2021.”

Author

FXStreet Team

FXStreet

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 clings to gains just above $5,000/oz

Gold is reclaiming part of the ground lost on Wednesday’s marked decline, as bargain-hunters keep piling up and lifting prices past the key $5,000 per troy ounce. The precious metal’s move higher is also underpinned by the slight pullback in the US Dollar and declining US Treasury yields across the curve.

Crypto Today: Bitcoin, Ethereum, XRP in choppy price action, weighed down by falling institutional interest

Bitcoin's upside remains largely constrained amid weak technicals and declining institutional interest. Ethereum trades sideways above $1,900 support with the upside capped below $2,000 amid ETF outflows.

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

US GDP and PCE inflation are main highlights, plus the Fed minutes. UK and Japan have busy calendars too with focus on CPI. Flash PMIs for February will also be doing the rounds. RBNZ meets, is unlikely to follow RBA’s hawkish path.

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.