08.02.2019: Is Russia to withdraw from OPEC+? (BRENT, WTI, USD/CAD)
Political uncertainty connected with trade relations between the United States and China influences the market sentiment and puts some trading instruments under pressure.
The Brent crude benchmark is trading at 61.50 dollars per barrel, having recovered after the recent rapid plunge of almost 2%.
Remarkably, the main reason behind the plunge was Russia’s decision to refrain from cutting oil production until May. Official representatives of Saudi Arabia made everything possible to persuade Moscow to participate in the OPEC+ deal. However, Russian energy minister Alexander Novak disappointed market participants, saying that the final agreement can be signed no sooner than at April’s OPEC meeting.
It means that oversupply concerns will persist in the oil market due to a rapid pace of oil production in the United States that is close to record levels.
WTI is trading at 52.52 dollars per barrel today, having retreated slightly after a 2-percent fall.
As for the commodity currencies, they continue rising against the greenback, though the US dollar index lost momentum due to political uncertainty. Thus, the USD/CAD pair is trading near the level of 1.3320. Today Canada will release the labor market statistics that can change movement of the Canadian dollar. However, it is unlikely to boost a rapid surge in the national currency.
Meanwhile, the ruble is sliding against its American counterpart. Crude oil remains under pressure which dents a rise in the Russian currency. Besides, the Bank of Russia will hold a monetary policy meeting in the nearest future. Its results may contribute to a further fall of the ruble against the US dollar.
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