US banks were involved in the oil market, it threatens them with new, more stringent stress tests next year. This behavior further emphasizes the impact on price policy of crude oil not only in the energy sector but also in the financial. In its recent forecast the OPEC lowered expectations for oil demand, and announced that the price of crude oil can not return to the levels of $100 up to 2040.
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OPEC, in its recent report to World Oil Outlook tried to predict the dynamics of oil for the next 25 years. The organization's experts estimate the current cost of barrel in $31, in 2020 oil prices may cost $80, by 2030 price will increase to $123, and in 2040 - up to $160.
The Japanese yen rose amid falling Japanese standard bonds to a record low of the last ten months. This is due to the decision of the Bank of Japan about increasing the range of assets purchasing program. The national currency of Japan increased by 0.5% to 121.92 per US dollar to 6:15 GMT.
Economic activity in China shows unexpected strength, industrial production growth reached a record high of the last five months. It can be noted that Beijing's stimulus measures give results, and gradually strengthen the weak economy.
Leading economic historian Barry Eichengreen of the UoC, Berkeley, said that the Fed chief Janet Yellen and the other voting members of the board should seriously think about increasing interest rates amid falling commodity prices. "I would have thought a few times before acting", - says Eichengreen in an interview to Bloomberg.
Last Friday, US stocks (the S&P 500 and Dow Jones) showed record growth during one day for almost three months. This behavior was due to the fact that investors viewed strong employment data in the US as the next evidence of decisive action of the Fed on rate increases this month. On the other hand speech by ECB President Mario Draghi about that central bank is ready to increase stimulus in case of need, gave impetus to the single currency up more than 400 pips.
According to conclusions of experts, the data on employment are not particularly strong influence on the Fed rate increase. Voting members of the board of the Federal Reserve has repeatedly hinted at fact that increase of interest rates nevertheless will held in December.
All market participants are preparing for one of the most important weeks of the year. The ECB is planning to increase incentives, the Fed is trying to determine as accurately as possible the current situation with data on employment before the meeting on 15-16 December.
On December 4 there will be held the 168th OPEC meeting, which is so much expected by market participants. The most discussed scenario of the meeting results - is the preservation of volumes production at the current level of 30 million barrels per day. OPEC categorically does not want to reduce the production volumes, and thus gives a signal to market that the cartel will not reduce oil production, while other manufacturers do not do this.
Recently, OPEC adopted Indonesia into its ranks, such a choice has surprised many, because this country consumes twice as much oil than it produces. In early December Indonesia will officially receive a place in OPEC after nearly seven years of freezing its membership. According to the promises of Indonesia, it is the only Asian country and will be aimed at this market, which has the greatest demand in regions.