Forex Marketz Daily Forex News – Fully Markets Update
Crude oil futures contracts firmed Monday during the Asian trade session. Traders are digesting news of an attack by Yemeni separatists on a Saudi oil field. However gains are being capped by recent comments, made by President Donald Trump, who said that he is not ready to sign a new trade deal with China.
Gains are also being capped by a recent report out of The Organization of Petroleum Exporting Countries (OPEC) that showed that they have concerns over global demand for the black gold.
As of 3 am GMT, the international Brent crude futures contract was up over one percent, or 64 cents, to trade at $59.28 a barrel
U.S. West Texas Intermediate (WTI) futures were up one percent, or 55 cents, to trade at $55.42 per barrel.
On Saturday, a drone attack by the Yemeni Houthi group on an oilfield in eastern Saudi Arabia caused a fire at the gas plant. This is adding to already heightened tensions in the Middle East that is threatening global supply of oil. The state run Saudi Aramco said oil production was not affected by the attack.
Crude Oil Traders digest Trade War Comments and Wait on the FOMC Minutes
Traders are waiting on the Federal Open Market Committee (FMOC) to publish their monetary policy meeting minutes. The FOMC minuets are scheduled for Wednesday and could show that that the Federal Reserve is not as dovish as everyone thinks.
Traders are also monitoring commentary out of this week’s Federal Reserve’s Jackson Hole symposium. Trades are still pricing in about a 70 percent chance of a 25 basis point rate cut at the FOMC’s meeting in September.
Overnight, President Donald Trump held a press conference. He said that he was not ready to make a trade deal with China. Also, he considers Huawei a threat to national security. He also said that a new trade deal with China is being made more difficult thanks to the ongoing protests in Hong Kong.
