The US Payrolls Bring New Hope for Gold
The Us Bureau of Labor Statistics will release monthly average hourly earnings, non-farm employment change (NFP), and unemployment rate on June 3, 15:30 MT time (GMT+3).
OPEC may increase oil supply at meeting on March 4
Information is not investment advice
What will happen?
OPEC will hold a meeting on March 4, where it should announce its decision on further oil output. Since oil prices have rebounded recently, OPEC members may start slowly increasing the crude production. Oil prices returned to the pre-pandemic levels and settled at fresh 13-month highs.
What to look for?
Saudi Arabia and Russia have opposite views about the oil market. While Saudi Arabia’s side urge to be “extremely cautious,” despite prices rebounding, Russia signals its intentions to raise oil output.
These days, OPEC members are withholding 7 million barrels a day from the market, about 7% of worldwide production. For such countries as Iraq and Nigeria, it's a real sacrifice as it causes economic problems as exports drop. However, it helped to boost oil prices to the current levels.
Investors should focus on two crucial decisions. Firstly, OPEC members have to decide whether to increase output by as much as 500 000 barrels a day or not. They have already discussed it in December, but rejected this idea at the January meeting. Secondly, Saudi Arabia claimed it might cut 1 million barrels a day in any case on a voluntary bias in February and March. The final decision will be made at the meeting.
According to Rystad Energy AS, “the elephant in the room is Saudi Arabia’s gift of 1 million barrels a day in extra cuts. If the gift is snatched back, prices cannot do else but decline.”
How will it impact oil prices?
Brent oil is getting closer to the key psychological mark of $70.00. It’s unlikely to break it on the first try, but if OPEC prolongs output cuts, Brent oil may rally up above this resistance to the high of May 2019 at $73.00. In the opposite scenario, the increase of oil output will press oil prices down. If Brent drops below the recent low of $62.00, it may fall further to the 200-weekly moving average at $59.00.
Notice that to trade Brent oil with FBS, a trader need BRN-21K.
Similar
The OPEC Meeting May Push Oil to $150
The Organization of Petroleum Exporting Countries will hold a meeting on June 2.
The First Oil Decision of 2022
Organization of the Petroleum Exporting Countries (OPEC) is scheduled to meet on January 4.
Popular
Market Crash Incoming?
This week may be the most important since the year started as the Fed assess the economic outlook and the US presents fresh NFP readings.
Investor Positivity May Fade After Powell's Speech and CPI Release
The United States Bureau of Labor Statistics will publish the US Consumer Price Index (CPI) m/m on January 12 at 15:30 GMT+2. The index measures a change in the price of goods and services purchased by consumers.
What Can Rule the Roost in January 2023?
2022 was rough: inflation, energy crisis, and plenty of other controversial situations…
Choose your payment system
