Beyond OPEC supply management, crude oil prices have also been borne by the expectation that the United States will reintroduce sanctions on OPEC member Iran. They have received broad support from voluntary cuts in supply led by the Organization of the Petroleum Exporting Countries. Meanwhile, weak prices of the 2019 oil producers have to reduce. Natural gas prices dropped to their lowest level since August 26 yesterday, amid gloomy demand prospects.
The market can start in a lighter price scenario. Markets are also worried about trade tensions between the United States and China, in which both sides face stiff obligations to impose each other’s exports on crude oil, including the United States, Reuters reports. As a result, the US crude oil market has shifted from year-over-year storage deficit to a surplus.
The strong US currency, which makes dollar-priced commodities more expensive for holders of other currencies, also affected oil prices. The dollar slid as optimism that the United States and China will reach an agreement to end their trade war reduced safe haven demand for the dollar. The weaker dollar has made oil even more attractive to investors.
Libby’s George London (Reuter) crude slipped on Wednesday, under pressure from a strong dollar and high oil stocks, although prices remained on track for a monthly gain of more than 10 percent. Oil prices are in the overbought zone, which prompted some profit taking in today’s trading session before the weekend, ” said Abhishek Kumar, senior analyst at Energie Interfax Energy Global Gas Analytics in London. They were set for a second consecutive week of earnings on Friday, supported by supplies and continued support from OPEC and its allies to attract supply cuts. They slipped on Friday as traders took profits following a rally declining Venezuelan production, strong global demand, and impending US sanctions against Iran. They were moving ahead in a relatively quiet Friday morning trade as a weaker dollar oil futures would help set the stage for a weekly gain after the sharp decline last week. Crude oil prices scored their biggest profit of the week so far, according to an Energy Information Agency (EIA) inventory report, showing crude oil inventories fell more than previously estimated during construction eased in gasoline stocks. Higher crude oil prices helped boost the Canadian dollar against the US dollar.
In terms of oil supply and demand, the market will still weigh the impact of rising US shale production against OPEC cuts, and if the growing American outcome of the cartel does not interfere with supply efforts, curb redistribution of the market and lift prices. But the job market is still not strong enough to suggest that the Fed or other central banks should tighten rates. The goods benefit from higher imports from China, the latest customs data imports highest in three months in November show how more shipments were deleted from the USA. Agricultural commodities are consolidating the upward move after the potential business was first announced.
Sugar prices for a fourth consecutive day climb today look set as they move toward the 200-day head moving average at 0.1203. They got a boost Thursday from the US government data, which shows a decline in domestic crude oil inventories and perceived geopolitical risks of supply from anti-government protests in Iran. The week ended with a report showing that Japan’s core consumer prices rose for the first time in five months in November, but a drop in the budget on the BoJ spending forecast raised doubts that strong consumer prices and the bank’s help hit its 2 percent target to lift .
CORN prices are ready for the third weekly decline in four weeks as the merchandise consolidates a five week rally, sawing corn prices rise more than 15% from early September to mid October. It touched the highest since April yesterday after posting the biggest weekly gain since mid-January last week. GOLD prices fell most in a month last Friday after the US job report showed 266,000 jobs had been added in November, the largest monthly gain since January. February Comex gold prices continue to consolidate slightly above multi-year lows, ending higher for the week.