News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
EUR/USD
Bullish
Oil - US Crude
Bearish
Wall Street
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Bullish
GBP/USD
Bullish
USD/JPY
Bullish
More View more
Real Time News
  • Indices Update: As of 14:00, these are your best and worst performers based on the London trading schedule: US 500: -1.67% Wall Street: -1.78% France 40: -2.34% Germany 30: -2.38% FTSE 100: -2.78% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/qXVjzv7tfg
  • Fed's Mester: -Want to see more, broader progress in recovery -May end year with inflation above 2%, but falling next year -Sees upside risks to inflation forecast -Sees upward valuation pressures in equity markets -Don't see elevated market risks now, but must be attuned $SPX
  • Inflation concerns revive the reflation trade, evident in yesterday’s Nasdaq drop DAX 30 likely to face increase selling pressure as tech stocks unwind. Get your market update from @HathornSabin here:https://t.co/LH8K92N8LY https://t.co/BB2FDC9qtW
  • Hey traders! Risk aversion really picked up yesterday at the close of the session. What is in-store today? Find out from @DailyFX Chief Strategist @JohnKicklighter 👇 https://t.co/wJkVH4AZUY
  • Commodities Update: As of 14:00, these are your best and worst performers based on the London trading schedule: Silver: 0.49% Oil - US Crude: 0.35% Gold: -0.22% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/GKaLs4uLkI
  • Heads Up:🇺🇸 Fed Williams Speech due at 14:30 GMT (15min) https://www.dailyfx.com/economic-calendar#2021-05-11
  • Heads Up:🇬🇧 BoE Gov Bailey Speech due at 14:30 GMT (15min) https://www.dailyfx.com/economic-calendar#2021-05-11
  • JOLTS US job openings soar to 8.1M, the highest reading on record and well above the consensus forecast looking for 7.5M.
  • Not a pretty picture for the Nasdaq 100 which opens to its biggest bearish gap since October 2nd. Takes out the 100-day moving average and 38.2% Fib of the March-present range. The past year's trendline support still in place at ~12,900 https://t.co/5D2YW648Nc
  • Central Bank chat on tap later today. (BST/GMT+1) https://t.co/0RuBGVbW8m
Crude Oil Price Analysis: Oil Prices Jump on Hurricane and Supply Risks

Crude Oil Price Analysis: Oil Prices Jump on Hurricane and Supply Risks

Justin McQueen, Analyst

Oil Price Analysis and News

  • Crude Oil Prices Jump to Near 2-month highs
  • US Crude Stocks Drawdown Support Oil Complex
  • Hurricane Risks Increasing

Yesterday, Brent and WTI crude futures settled 4.5% higher, hitting its highest level in nearly two months, having made a break above $67 and $60/bbl respectively. The oil complex had been underpinned by several factors ranging from a weaker USD, stemming from the outlook on Fed policy, alongside the latest production update from the EIA.

EIA Production: The latest DoE oil inventory report showed a sizeable drawdown in crude stocks of 9.49mln barrels, larger than the 3mln barrel drawdown that markets had expected and more importantly, a bigger drawdown shown in the API crude oil inventory report of 8.13mln barrels. As such, this marked the 4th consecutive weekly drawdown in crude stockpiles, which has also coincided with US crude production stalling and thus buoyed the energy complex. This is also at a time where seasonal factors, such as peak oil demand due to the US driving season is at play.

Hurricane Risk: Elsewhere, risks of supply disruptions are on the rise with tropical cyclones heading towards the Gulf of Mexico. Consequently, US crude production is set to decline by 32% as oil producers begin evacuating, thus, going forward oil stockpile drawdowns look set to continue, which in turn may place a floor on oil prices.

Please add a description for the image.

Source: Thomson Reuters.

Iranian Tensions: Aside from domestic production, rising tensions in the middle east and particularly around the Strait of Hormuz continue to pose supply risks with the latest reports noting that Iranian ships have attempted to impede UK vessels.

Brent Crude Price: Daily Time Frame (Sep 2018 – Jul 2019)

Please add a description for the image.

Oil Impact on FX

Net Oil Importers: These countries tend to be worse off when the price of oil rises. This includes, KRW, ZAR, INR, TRY, EUR, CNY, IDR, JPY

Net Oil Exporters: These counties tend to benefit when the price of oil rises. This includes RUB, CAD, MXN, NOK.

Recommended Reading

What Traders Need to Know When Trading the Oil Market

Important Difference Between WTI and Brent

--- Written by Justin McQueen, Market Analyst

To contact Justin, email him at Justin.mcqueen@ig.com

Follow Justin on Twitter @JMcQueenFX

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES