Heroes of Ukraine

«Market Leader» - news and previews making you rich.

Tuesday, 22 January 18:44 (GMT -05:00)



Stock and commodities markets

US-China Trade War Drops Oil Prices


 

The trade war between the United States and China is underway. Yet, it has already led to some consequences. For example, international experts say that this war has been the reason for the current weakness of the global market of cryptocurrencies. At the same times, Finanz experts claim that this trade war has dropped oil prices.
 
A couple of days ago, the price of Brent oil dropped down 6,69 dollars per barrel, which is the current 2-week low. In 24 hours, it has lost 1,8% and 4,1% since the start of the trading week. At the same time WTI oil has lost over 4,5% of its value. This is the second biggest daily price drop for the last 12 months.

Once again, they say that the key reason for this market drop is the trade war between the world’s two biggest economies, the USA and China. The other day, the USA revealed the list of 1300 Chinese products with increased import duties (up to 25% for some of them). In response, China did the same thing for American products to the amount of 50 billion dollars, including agricultural, automotive and airspace products from the USA.

Some experts claim that the trade war may seriously affect oil prices and therefore reduce to nothing all the efforts made by the OPEC+ participants to cut the global commercial inventories of crude oil and restore the market balance.

By the way, the OPEC+ deal got its status undermined seriously by the participants themselves. Firstly, Russian companies failed to comply with their obligations in March by cutting their daily production by 270K b/d instead of 300K b/d. Secondly, even though Saudi Arabia beat the target in March, the Saudis keep on dumping oil prices for Asian importers. At the same time, American oil companies keep on cutting down on their imports.

As a result, there is a big imbalance emerging in the market of oil futures today. The amount of long positions is 13 times as big as the one of short positions, which bring profit if oil prices go down. Others say that hedge funds may start selling out oil futures, which may bring Brent oil down to 60 dollars per barrel in Q2 2018.

 

 

 

You are free to discuss this article here:   forum for traders and investors

 

Add to blog
Got a question? – Ask it here »
 

USD Dependent On Trump - Dukascopy TV

The more President Donald Trump focuses on anti-trade, the worse the USD will perform. However, the more he focuses on pro-growth the more the USD will soar.

Alfonso Esparza, OANDA.

Publication date: 27 January 06:56 AM

Economic Calendar by Dukascopy 27.01.2017

The news release schedule may be short on Friday, the 27th of January, but it does bring some very important publications.
The closely watched preliminary US fourth quarter GDP is out at 1:30 PM GMT. The third quarter data surprised on the upside as strong soybean exports made a significant contribution to the bottom line.

Publication date: 27 January 04:45 AM

Economic Calendar by Dukascopy 26.01.2017

Thursday, the 26th of January, is a busy day, so let's see which releases stand out.
Aussie Dollar traders can take some time off to celebrate the Australia Day as markets will be closed.
Swiss Trade Balance for December comes at 7 AM. Trade surplus saw a notable growth in November as exports went up and imports declined.

Publication date: 26 January 05:55 AM

PiS Impact on PLN «Overestimated» - Dukascopy TV

The impact of the PiS Government victory on the PLN depreciation trend has been overestimated by western media.

Dr Jaroslaw Kosaty, PKO BP.

Publication date: 25 January 06:53 AM

Economic Calendar by Dukascopy 25.01.2017

You're watching the Economic Calendar for Wednesday, the 25th of January. Here's a rundown of the most important news releases.
Swiss UBS Consumption Indicator for December is up first at 7 AM. The Index did see some improvement in November in light of increased domestic tourism and higher car sales.

Publication date: 25 January 05:02 AM

Economic Calendar by Dukascopy 24.01.2017

Tuesday brings the latest Purchasing Managers Indices, so let's take a closer look with the Economic Calendar.
January PMIs from Euro zone countries are up first thing in the morning, starting with French data at 8 AM. The German index follows 30 minutes later, and the Euro Zone PMI comes at 9. The manufacturing index continued to improve in December as gains were recorded both in Germany and France, but the services index eased from the 12-month high reached in November.

Publication date: 24 January 07:32 AM

CBR Buys Foreign Currencies - Dukascopy TV

The central bank believes by reducing inflation it will help reduce the rouble’s volatility and support Russia’s exporters.

Sergei Voloboev, Norvik Banka UK

Publication date: 23 January 06:50 AM

Economic Calendar by Dukascopy 23.01.2017

You're watching the Dukascopy Economic Calendar. Here's a rundown of the most important news releases scheduled for Monday, the 23rd of January.
Japanese All Industry Index for November is up first at half past 4. The Index returned to growth in October, having stood unchanged the previous month.

Publication date: 23 January 06:22 AM

Trump Inauguration Peso Impact - Dukascopy TV

Donald Trump's inauguration will put pressure on the Mexican Peso and his first 100 days in office will be a difficult time for the currency pair.

Alejandro Padilla, Banorte-Ixe bank

Publication date: 20 January 06:47 AM

GBP Uncertainty Already Dissolved by Dukascopy TV

Theresa May Managed to present an incredible picture of a strong United Kingdom at the center of global commerce.

Mati Greenspan, etoro.

Publication date: 18 January 06:43 AM