06.12.201815:35 Forex Analysis & Reviews: Oil: OPEC meeting on reducing oil production has begun

The first news appeared on the OPEC meeting. The Minister of Energy of Saudi Arabia said that while an agreement has not been reached, since not all countries are ready to cut production. All possible solutions are being considered since it is important to agree on participation in a transaction with non-OPEC oil producers.

The Saudi minister said that reducing production by 1 million barrels per day, which has been talked about for quite some time, will be sufficient to balance the market, adding that his country does not need permission from any other countries to reduce production.

Iranian Oil Minister Zangeneh also said that Iran has nothing against reducing total production, but will not participate in the deal until the United States lifts the sanctions. According to him, this is the first time when the American president dictates OPEC what to do, which goes beyond what is permitted. According to Zangeneh, the acceptable range of oil prices, which would suit all the countries belonging to OPEC, is 60-70 dollars per barrel.

The Venezuelan oil minister also criticized the American president, saying that OPEC does not receive instructions from anyone, and Donald Trump should act as an observer outside OPEC.

Already appeared and dissent. For example, the Libyan oil state company NOC refused to reduce its production.

Let me remind you that the meeting is designed for two days, it is quite possible that today there will be no final decision.

As for the foreign exchange market, the European currency ignored today's data on the growth of orders in the manufacturing sector of Germany. According to the report, despite a sharp decline in domestic demand, orders in the manufacturing sector of Germany grew in October of this year compared with September. Growth was directly associated with an increase in orders from other eurozone countries.

As indicated in the report from the Federal Bureau of Statistics of Germany, orders in the manufacturing sector in October 2018 increased by 0.3% compared with September, while economists expected the figure to remain unchanged.

As I noted above, domestic orders in the manufacturing sector in Germany declined by 3.2% in October compared with September, while orders from other eurozone countries rose by 7.3%. Demand from outside the eurozone increased by only 0.3%.

Compared to October of the previous year, orders in the manufacturing sector of Germany decreased by 2.7%.

Today, a number of statements were made by the Ministry of Commerce of China. It was noted in them that the Chinese side will immediately begin to implement the agreements reached with the United States at the G20 summit at the weekend. It is also emphasized that the Chinese authorities intend to fulfill their obligations, and first of all, it concerns the car trade. Over the next three months, China and the United States will discuss issues of intellectual property, technology cooperation, and market access.