After long negotiations, OPEC members found that will reduce oil production to 32.5-33 million barrels/day relative to 33.2 million b/d in Aug. This is the first such decision of 8 years, however, it should be understood that the production limits of OPEC in fact has always been crossed, often very clearly. The question of who and how much to reduce the current production was delayed until the time of the November summit of the cartel, therefore, the agreement can quickly lose value and be only rhetoric of deception. In addition, the decline in OPEC production about 700 thousand b/d is not a big impact. In the fourth quarter of Saudi Arabia, probably, the reserve extraction. 500 thousand b/d due to a seasonal decline in domestic demand. It is also worth noting that this year’s production at a minimum level of 32.5 million b/d were included in every month except March. Last year was below this level in each of the months (and it is usually noticeable), and, in spite of this, was created a huge surplus of raw materials.
Therefore, with a large proportion of the reserve to approach about the possibility of a rapid rebalancing of supply and demand in the oil market. Doubts investors may be a threat to the current rally in oil prices. On the other hand, some investors tactically sitting on a short position based on the disappointment that finally ended painfully and closing losing positions gives support to prices. We have a short-term mess, which can jump to other asset classes.
however, if music is playing to risky assets. In forex, CAD, EUR and RUB are the obvious winners. JPY loses that clear on the improving sentiment and increased stock market indices, although the scale of growth of USD/JPY seems to be excessive. Fracture stop loss orders and permutations with the end of the month can have some influence, so caution persons, harassment of his Department. In addition, fluctuations in the major currency pairs are moderate.
Golden quite well behaved on the resignation of the Minister of Finance in Poland. The control Agency will take on Deputy Prime Minister Morawiecki, which will stop also the patronage of the Ministry of Development. Changes are not a big surprise, as such rotacjach it has been speculated for some time. It is doubtful that fiscal policy was now deeper reform. Despite this the current situation, gold is more, the local and the global, which can ruin the atmosphere around the Golden. The potential decline in EUR/PLN can quickly find want to buy.
on Thursday, the calendar is rich with performances of the Central bankers, but the same as yesterday, expectations are low. The cannonade on the part of Fed officials on Wednesday were focused on focusing on expectations of increasing to the end of the year, but the market did not rush to the hawks mentioning. The fed has trust issues, especially when data of the macro-economy give rise to self-doubt, not including the risk surrounding the presidential elections. From the data today we will get the ultimate respect of GDP for the II quarter with a chance for positive searches. With the Fed votes will be allowed Harker, Lockhart, Powell, Kashkari and Yellen.
in addition, the index of sentiment in the Euro-zone economy, inflation in Germany, and applications for unemployment benefits and an index of signed contracts to buy homes in the United States. This is not a first-class position.
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