Oil is showing correction

Posted 14 February, 2017

Oil prices at today's trading showed a moderate growth. Main reason for the strengthening of prices is an optimistic data on the OPEC compliance, which are interested in production cuts. By noon, the price for Brent crude was around $56 per barrel, the US benchmark WTI was trading above $53 per barrel.

Earlier, OPEC has published a report that demonstrated the implementation of almost all agreements between the cartel and other major producers of oil on decreasing the production. Also, OPEC has revised upwards the forecast for demand this year. However, the organization fears that oil production in other countries, outside the cartel, will increase due to excessive activity of American manufacturers.

Today you should pay attention to the speech of Janet Yellen, the FED Chairman, which will probably affect the US dollar and rest of basket of currencies and assets, including commodities. Analysts notice that last time oil prices have become quite sensitive to fluctuations of the dollar index. In the evening, the American petroleum Institute will release its weekly data on oil reserves in the United States. In Cairo (Egypt) today is the first day of the international conference on oil and gas.

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14 February, 2017 17:26

← Rockefeller Treasury Services, Inc. Analytics | 14 of February

We want specifics from Yellen but the probability of getting any is practically zero. Everyone will be seeking the barest of whispers of a hint that March might be a real possibility or that the market is wrong to say two when the Fed is saying three. At a guess, Yellen will be even more restrained and cautious than usual, if that’s possible, because this time she faces the Senate in Republican control for the first time.

Rockefeller Treasury Services, Inc. Analytics | 14 of February

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13 February, 2017 16:00

Rockefeller Treasury Services, Inc. Analytics | 13 of February →

On the data front, the biggie this week is US inflation, which Bloomberg projects at a whopping 2.4% (from below 0.5% percent in Sept 2015). CPI is not what the Fed watches but a data point like that will roil markets. The CPI report is on Wednesday, the first day of Fed chair Yellen testimony (to the Senate finance committee).

Rockefeller Treasury Services, Inc. Analytics | 13 of February
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