Daily Market Briefing
Intraday volatility in oil prices has been high this week, but currently Brent oil price is hovering just above $65.5 which is near Monday’s level.
Despite global economic growth fears and record U.S. oil production, the current production cut deal by OPEC and non-OPEC oil producers continues to support oil prices.
Overnight Chinese trade activity data showed a drop in exports to 3-year low, imports dropping as well – increasing fears of an economic growth slowdown in the huge country. China is the world’s largest crude oil importer and according to Chinese data the country imported more than 10 mio. barrels per day in February which is an increase of more than 20% compared to a year ago.
Yesterday the European Central Bank (ECB) announced that it will postpone the first interest rate hike since the financial crisis due to economic growth concerns. The earliest hike could be seen next year. As growth is slowing in the European economy, the ECB does not wish to discourage lending by increasing interest rates. After the downgraded outlook the euro fell to its weakest level since 2017 against the US Dollar.
Today, U.S. Non-Farm Payrolls and U.S. Unemployment rate is released at 14.30 CEST. This is expected to cause high volatility. End-of-day, the weekly oil rig count from Baker Hughes is released. Last week, the number of active U.S. oil rigs fell by 10 to 843.