Forex Marketz Daily Forex News – Fully Markets Update
Crude oil futures contracts inched higher Friday during the early Asian trade session. The international Brent futures contract gained nearly three percent after President Donald Trump announced a plan to reopen the United States economy.
The world’s largest economy has been ravaged by the Covid-19 (coronavirus) pandemic. Their economy has come to a virtual halt and this has cratered the demand for oil and other refined products.
As of 1 am GMT, the Brent crude oil futures contract was up 75 cents or 2.7 percent to trade at $28.57 a barrel.
The U.S. West Texas Intermediate (WTI) crude oil futures contract, for April 21 expiration, was up once cent or 0.1 percent to fetch $19.88 a barrel. The June contract was up over one dollar or 4.3 percent to trade at $26.63 a barrel.
Crude Oil Traders Digest Trump’s Comments to Reopen the Economy
Overnight, President Donald Trump rolled out a three step process to reopen the world’s largest economy and end the lockdowns in place to contain the pandemic that has killed 32,000 Americans and 140,000 around the world.
Other countries, like Germany, Italy and Israel are also relaxing restrictions to gradually reopen their economies that have been hit hard by the coronavirus viral outbreak.
Oil Traders Digest OPEC Forecast Numbers for Demand
The Organization of the Petroleum Exporting Countries (OPEC) lowered its demand forecast for the current year. OPEC also warned that this might not be the final revision lower. The oil cartel sees a reduction in global oil demand of 6.9 million barrels per day due to the Covid-19 outbreak.
OPEC said, in the report, that “downward risks remain significant, suggesting the possibility of further adjustments, especially in the second quarter.”
Last weekend OPEC and non-member allies led by Russia agreed to cut output by 10 million barrels per day starting on 1 May. Other countries, like Norway and the United States will add an addition ten million barrels per day in cuts.
