Forex Marketz Daily Forex News – Fully Markets Update
Crude oil futures contracts are moving higher during the Asian trade session on Thursday.
Traders are digesting a change in the forecast from The Organization of the Petroleum Exporting Countries (OPEC). They are also monitoring a surprise increase in inventory levels in the United States.
Overnight, the Federal Reserve left monetary policy and rates as is but made dovish signals regarding interest rate levels that will remain low until inflation reaches their two percent target.
As of 2:40 am GMT, the international Brent crude oil futures contract was up 24 cents to trade at $63.96 a barrel. This contract shed one percent on Wednesday after the U.S. inventory build.
West Texas Intermediate (WTI) crude oil futures contract was trading lower. This contract lost ten cents to trade at $58.85 a barrel. The WTI contract lost 0.8 percent yesterday.
On Wednesday, the Organization of the Petroleum Exporting Countries (OPEC) said that they expect a small deficit in the oil markets next year. This is suggesting that the markets are tighter than what traders originally thought and helped to boost the price of oil.
This revised forecast from OPEC signals another retreat from their prediction of a global supply glut next year.
Crude Oil Traders Monitor Global Central Banks and UK Elections
On the economic calendar today, there are a number of key events to monitor. The European Central Bank and Swiss National Bank will be announcing monetary policy and rate decisions.
The United Kingdom is heading to the polls for their general election. The economic calendar out of the United States will see both the core and headline producer price index (PPI) data crossing the wires.
The SNB is likely leave monetary policy settings alone today. They should keep their key overnight lending rate at -0.75 percent. Traders will also listen to commentary from SNB Chair Chairman Thomas Jordan and what he has to say about the quarterly economic forecast. Jordan has previously said that the central bank will intervene if necessary.
