Dollar declines as oil prices fall pending OPEC + meeting

Dollar declines as oil prices fall pending OPEC + meeting

Dollar declines as oil prices fall pending OPEC + meeting as China’s economy index falls

 

Oil prices fall on Monday, investors await the next OPEC + meeting,
and China’s economy index declined as a result of the COVID-19 pandemic,
while the greenback fell to a basket of six customers, including the Japanese yen.

 

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Brent crude declines to $102.93 per barrel

OPEC + allows oil production to increase by 648 thousand barrels per day

China’s industrial sector activity index fell unexpectedly below 50 points

The dollar falls to 6-week lows against the yen.

 

 

 

 

 

 

 

 

Brent crude declines to $102.93 per barrel

 

By Monday morning, October Brent crude futures fell by $1.04,
or 1 percent on the London Futures Exchange, to $102.93 per barrel.

 

On Friday, the futures contract rose by $2.14, or 2.1 percent, to $103.97 per barrel,
and September futures, which traded last day on Friday, rose by $2.87 to $110.01 per barrel.

 

WTI futures fell on Monday morning in electronic trading on
the New York Mercantile Exchange (NYMEX) by $1.35, or 1.37 percent,
to $97.27 per barrel.

 

During the previous session, West Texas Intermediate crude rose by $2.20 (2.3%) to $98.62 per barrel.

 

The market is awaiting the outcome of this week’s upcoming meeting of OPEC + ministers on Wednesday,
and the alliance is expected to confirm the level of increase in oil production in September despite
the US calls to increase production more sharply.

 

The market remains concerned about the prospects for future global economic growth,
as many experts predict the start of a recession that could lead to lower oil demand.

 

Last week, US GDP fell in the second quarter by 0.9 percent,
while analysts expected it to grow,
as did the index for the second consecutive quarter,
which corresponds to the technical definition of recession.

 

China’s industrial sector activity index, one of the largest oil consumers,
fell in July unexpectedly below 50 points,
the mark that separates an increase in activity from a decline.

 

The decline is due to concern by businesses over
the sporadic outbreak of the coronavirus in some of the country’s cities,
as well as expectations of a worsening economic situation in the world.

 

 

 

 

 

 

 

 

 

 

 

 

OPEC + allows oil production to increase by 648 thousand barrels per day

 

OPEC + countries’ share of oil production from August 1
increased by an additional 648 thousand barrels per day,
however, it is likely to fall short of the planned limit.

 

In early June, OPEC + ministers decided to slightly increase
production quotas instead of 432 thousand barrels per day,
decided to increase them by 648 thousand barrels per day,
and for two months simultaneously.

 

In July, this decision was confirmed, and therefore in August
restrictions on cutting production by 9.7 million barrels per day,
which have been adopted since May 2020 during the COVID-19 pandemic, will be exhausted.

 

However, the Alliance’s countries are far behind the production plan established in May,
with the market receiving less than 2.8 million barrels per day (about 3 percent of global oil demand).

 

The next OPEC + meeting is scheduled for August 3, 2022,
when the issue of production levels will be decided for September.

 

artıcal name Dollar declines as oil prices fall pending OPEC + meeting

 

 

 

 

 

 

 

 

China’s industrial sector activity index fell unexpectedly below 50 points

 

The industrial sector index fell below 50 points again after surpassing
that level for the first time since February in June,
separating activity growth in the sector from the decline.

 

The decline is due to concern by businesses over
the sporadic outbreak of the coronavirus in some of the country’s cities,
as well as expectations of a worsening economic situation in the world.

 

Analysts expected the PMI to rise by an average of 50.4 points,
and economists expected it to grow to 50.3 points.

 

The sub-productive index fell last month to 49.8 points from 52.8 points in June,
new orders to 48.5 points from 50.4 points,
and the consolidated PMI fell to 52.5 points from 54.1 points in June.

 

artıcal name Dollar declines as oil prices fall pending OPEC + meeting

 

 

 

 

 

 

 

 

The dollar falls to 6-week lows against the yen.

 

The dollar falls to 6-week lows against the yen on Monday morning as markets continued to bet
that the Fed had less tightening on the US economy at risk of recession.

 

and The dollar fell to a low of 132.07 yen for the first time since June 16 and last fell by 0.45 percent at 132.605.

 

The currency pair is highly sensitive to changes in US long-term Treasury yields,
with the benchmark 10-year index approaching 2.67 percent after falling to the lowest level
since early April at 2.618 percent last weekend.

 

The US dollar index, which measures the currency against six peers, including the yen,
fell by 0.18 percent to 105.80, declining towards Friday’s low of 105.53, a level not seen since July 5.

 

Last weekend’s data pushed the dollar both ways,
initially rising after the personal consumption expenditure price index showed the fastest inflation since 2005,
but reports showed consumer inflation forecasts fell.

 

The euro was little changed at $1.02235 and remained steady near the middle of its range over the past week and a half.

 

Sterling settled at $1.2183, after hitting its highest level since June 28 at $1.2245 on Friday,
and markets also set 67 percent odds of England raising its interest rate by half a point on Thursday.

 

The Australian dollar fell by 0.1 percent to $0.6984 on Monday,
down from a six-week high of $0.7032 in the previous session.

 

artıcal name Dollar declines as oil prices fall pending OPEC + meeting

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