|Day's range||45.00 - 45.00|
OPEC and its allies led by Russia meet on Saturday over plans to extend record oil production cuts and to push countries such as Iraq and Nigeria to comply better with existing curbs. Nigeria's oil minister said he expected a deal on an extension, which has the backing of Saudi Arabia and Russia, to be concluded in the video conference talks despite "reservations of one or two member countries," which he did not name. The alliance known as OPEC+ previously agreed to cut supply by a record 9.7 million barrels per day (bpd) during May-June to prop up prices that collapsed due to the coronavirus crisis.
Inventories increases are accelerating
Oil prices have surged above $40 as OPEC+ looks set to extend its deal while the U.S. job report added to positive sentiment
A few short-covering rallies aside, we believe August Comex gold is likely to trade into the $1621.90 to $1582.40 retracement zone over the near-term.
Gold markets fell during the majority of the week and crashed through the $1700 level during the day on Friday after a positive jobs number.
July WTI crude oil is looking good ahead of the week-end, but still faces some headwinds before we’re likely to see a strong breakout to the upside.
The stock market exploded to the upside during the trading session on Friday, as the jobs number came out much better than anticipated.
The silver markets have formed an extremely negative looking candlestick for the week, and therefore it tells me that we are likely to pull back.
With OPEC looking likely to continue cutting, that is one of the main reasons that the oil markets have rallied again.
The natural gas markets drifted a little bit lower during the week, but also turned around to show signs of resiliency.
Silver markets fell hard during the trading session on Friday as the “risk on” trade seemed to get people running towards a lot of other assets.
The crude oil markets rallied a bit during the trading session on Friday, as we continue to reach towards the top of the overall gap.
The natural gas markets initially tried to rally during the trading session on Friday again, but gave back the gains to form a less than impressive candlestick.
Angola has cut the number of oil cargoes that it will ship to Chinese state firms to pay down debt to Beijing as it seeks to renegotiate repayment terms to deal with the crippling impact of the coronavirus, three sources familiar with the matter said. Angola said this week it had asked for G20 debt relief and was in advanced talks with some countries importing its oil on adjusting financing facilities, but expects no further debt overhaul to be needed beyond this. The sharp global economic slowdown due to the novel coronavirus pandemic pushed Brent oil prices to their lowest levels since the late 1990s and U.S. oil futures to negative territory for the first time in history.
This was exacerbated by a better than anticipated jobs number in the United States. That is an area that is obviously psychological in nature and has been a significant support and resistance barrier.
Oil prices are in rally mode today. WTI, the main U.S. oil price benchmark, was up 4.5% to about $39 a barrel by 10:15 a.m. EDT on Friday. Fueling the rebound in crude prices was a report that OPEC and its partners had agreed to extend their historic production cut by another two months.
The British pound has rallied significantly during the week and what can only be described as a parabolic break out.
The Australian dollar went parabolic during the week, crashing into resistance at the 0.70 level. This is a market that at the very least needs to digest gains.
WTI oil gets closer to $40 per barrel as traders expect that OPEC+ will extend current production cuts by at least one month.
A tanker carrying the first shipment of U.S. crude oil destined for Belarus reached the port of Klaipeda in Lithuania late on Friday. Belarus is looking to reduce its near complete energy dependence on its close ally Russia, after a row with Moscow this year over the price it pays for Russian oil. The dispute ended, but Belarus said it wanted to stand up against Russia's dominance of its market and diversify its oil imports.
The deal would keep new crude output in check as the world starts to draw down on some of the excess supply that has filled storage facilities to capacity.