2023-12-06 02:11

Copyrighted Image by: Reuters. Investing.com -- Oil prices on Wednesday settled below $70 a barrel for the first time since June, as a larger-than-expected draw in weekly U.S. inventories failed to coax the bulls out of hiding amid fears about supply glut blunting the impact of OPEC+ supply cuts set for early next year. At 14:30 ET (19:30 GMT), the U.S. crude futures traded 4.1% lower at $69.38 a barrel and the Brent contract dropped 3.8% to $74.30 a barrel. Larger US inventories draw takes backseat to supply surplus fears Data from industry group the American Petroleum Institute showed that oil inventories grew 594,000 barrels in the week to Dec 1, compared to expectations for a draw of over 2 million barrels. Weekly U.S. crude inventories fell by 4.6M barrels, compared with estimates for a decline of $1.03M, while gasoline supplies jumped by 5.4 barrels, well above expectations for a build of 1M. The jump in gasoline supplies come just as data showed earlier this week that daily U.S. oil production hit a record high in September, adding to concerns that growing non-OPEC supply will offset the impact of the OPEC+ pledged cuts of 2.2 million barrels a day slated for early next year. U.S. jobs data add to economic concerns Along with worries that OPEC+ won’t be able to curtail supply levels next year, concerns are growing about cooling global economic activity next year, and thus the associated demand for crude. Data released earlier Wednesday showed that U.S. private payrolls growth unexpectedly slowed in November, in another sign that the Federal Reserve's aggressive campaign of interest rate hikes could be hitting U.S. economic growth. This follows ratings agency Moody downgraded its credit outlook on China, and flagged increased economic risks to the country from a property market downturn and a lack of government stimulus. China is the world’s largest oil importer, and has steadily built up its oil inventories this year- a trend that could see the country wind down oil imports in the coming months, especially if economic conditions worsen. Concerns over China were also coupled with weak economic prints from most major economies. PMI data from Japan, the U.S. and the eurozone largely underwhelmed in November. Saudi Arabia reduced its official selling price for most of the buyers for January deliveries this week due to subdued oil demand and softer oil prices. https://www.investing.com/news/commodities-news/oil-prices-pinned-near-5mth-low-us-inventory-build-offers-little-relief-3250177

2023-12-05 22:20

Copyrighted Image by: Reuters. Investing.com -- U.S. crude inventory unexpectedly increased last week, the API reported Tuesday, adding to concerns about a potential global crude supply surplus following weaker-than-expected pledges to cut output by major oil producers last week. Crude Oil WTI Futures, the U.S. benchmark, traded at $72.06 a barrel following the report after settling down 1.1% at $72.32 a barrel. U.S. crude inventories rose by 594,000 barrels for the week ended Dec. 1, compared with a draw of 817,000 million barrels reported by the API for the previous week. Economists were expecting an decline of about 2.3M barrels. The unexpected increase adds to concerns about burgeoning non-OPEC supply offsetting recent output-cut pledges by OPEC and its allies, OPEC+. On Nov. 30, OPEC+ pledged to take 2.2 million barrels a day offline early next year. The API data also showed that gasoline inventories increased by 2.8M barrels last week, while distillate stocks decreased by 89,000 barrels. The official government inventory report due Wednesday is expected to show weekly U.S. crude supplies decreased by about 2.9M barrels last week. https://www.investing.com/news/commodities-news/oil-inventories-unexpectedly-jumped-by-594000-barrels-last-week-api-3250132

2023-12-05 21:45

Copyrighted Image by: Reuters. LONDON - The Euro dipped below the crucial 1.0800 mark against the Dollar today, as a shift towards safer assets was triggered by Moody's (NYSE:MCO) downgrade of China's credit rating. This event has heightened risk aversion among traders, leading to the Euro's decline against the Dollar for the fifth consecutive day. The downturn in the EUR/USD exchange rate comes despite positive economic indicators from the Eurozone. The Composite Purchasing Managers' Index (PMI), which tracks economic trends in manufacturing and service sectors, rose to 47.6 month-over-month, surpassing expectations that it would remain at October's level of 47.1. However, this uptick in PMI was not enough to support the Euro in light of broader market concerns. Adding to the cautious sentiment was a notable decrease in the US Job Openings and Labor Turnover Survey (JOLTS) job openings, which fell to their lowest point in more than two years. On the other hand, the strength of the US economy was underscored by an unexpectedly robust Institute for Supply Management (ISM) Services PMI, which came in at 52.7. This figure indicates continued vigor within a key American economic sector and suggests that the labor market remains tight. Looking ahead, forecasts indicate that while there may be some improvement in Eurozone Retail Sales on Wednesday, they are expected to stay negative year-over-year into October. Moreover, no growth is anticipated in Thursday’s release of Eurozone Gross Domestic Product (GDP) figures compared to last year’s data. The week is projected to conclude with Friday's US Nonfarm Payrolls, which could show an increase from previous levels. https://www.investing.com/news/forex-news/euro-falls-below-10800-as-moodys-china-downgrade-spurs-risk-aversion-93CH-3250116

2023-12-05 21:31

Copyrighted Image by: Reuters. WASHINGTON - The US Dollar Index continued its upward trajectory today, reaching a two-week peak around the 104.00 mark, bolstered by a series of positive economic indicators. The American currency's rise comes amidst a broader trend of strength for the greenback. Key economic data released today highlighted a mixed picture of the US economy. The JOLTS Job Openings saw a significant drop to 8.73 million in October, suggesting a cooling job market. However, the ISM Services PMI provided a more optimistic view, outstripping forecasts with a rise to 52.7, indicating continued expansion in the service sector. The performance of the US dollar has had notable effects on various currency pairs. The EUR/USD pair dipped below the critical threshold of 1.0800 after a continuous five-day decline. Similarly, the Australian Dollar weakened, with the AUD/USD falling past the significant level of 0.6550 and the AUD/NZD hitting its lowest close since mid-autumn. In anticipation of economic reports due tomorrow, markets are closely watching the US labor market, with ADP employment data and Q3 Unit Labor Costs report on the horizon. Additionally, global attention is turning towards Australia's Q3 GDP figures following the Reserve Bank of Australia's decision to pause rate hikes, and Eurozone retail sales numbers are set to be released alongside a positively revised Eurozone PMI report from November. In commodities, gold prices experienced a downturn to a weekly low at $2,010 per ounce, while silver also faced selling pressure, sliding to $24 per ounce. Meanwhile, cryptocurrencies bucked the trend of traditional assets with Bitcoin surpassing $43K and Ethereum breaking above $2,250, both reaching multi-month highs. The Canadian dollar is also under scrutiny as USD/CAD climbs toward 1.3600 with markets anticipating that the Bank of Canada will keep rates steady at an unchanged high of 5%. https://www.investing.com/news/forex-news/us-dollar-index-hits-twoweek-high-amid-positive-economic-data-93CH-3250092

2023-12-05 20:12

WASHINGTON - The US dollar experienced a notable appreciation against the Norwegian krone today, reaching a peak of 10.935, an increase of 0.80%. This movement coincides with the release of economic data that showed a mixed bag for the US job market and service sector. The latest Job Openings and Labor Turnover Survey (JOLTs) reported a decrease in job openings in October, falling to over 8 million, which was below market expectations. However, this was contrasted by the Institute for Supply Management's (ISM) Services Purchasing Managers' Index (PMI) for November, which outperformed consensus estimates by registering above the midpoint of the fifties range, indicating expansion in the service sector. Furthermore, the US Dollar Index, which measures the strength of the dollar against a basket of other major currencies, reached its highest level since mid-November. This suggests that the dollar is gaining ground more broadly and not just against the Norwegian krone. Looking ahead to Friday's economic reports: https://www.investing.com/news/forex-news/us-dollar-reaches-monthly-high-against-norwegian-krone-as-service-sector-expands-93CH-3250021

2023-12-05 19:53

Copyrighted Image by: Reuters. LONDON - West Texas Intermediate (WTI) crude oil prices continued their downward trend for the fourth day, dropping to $72.47 per barrel today amid a stronger U.S. dollar and mixed signals regarding demand and supply in the market. The decline comes despite OPEC+'s recent decision to reduce production and hints of potential further cuts. On November 30, OPEC+ members agreed to a substantial cut in oil production by 2.2 million barrels per day (bpd) for the first quarter of 2024, which includes ongoing voluntary reductions by Russia and Saudi Arabia that have been in place since August 2023. This move was aimed at stabilizing the market, yet the impact seems to be overshadowed by current market dynamics. Adding to the complexity, Russian Deputy Prime Minister Alexander Novak suggested that OPEC+ might contemplate even deeper production cuts to counteract market volatility. Meanwhile, President Vladimir Putin noted that the benefits of these actions would not be immediate, as evidenced by Russia's decline in oil revenues to $10.53 billion in November from higher figures in October. In a strategic pivot, Saudi Arabia is set to lower its oil prices for Asian markets starting January 2024. This marks the first price reduction for these markets since June last year and indicates a shift in approach to manage market share and demand. The interplay between OPEC+ production decisions, geopolitical factors, and market technicals continues to drive volatility in oil prices as industry players watch for signs of stabilization or further decline in this critical energy market. https://www.investing.com/news/commodities-news/wti-crude-extends-losses-as-dollar-strengthens-opec-cuts-considered-93CH-3250008