|Day's Range||2.6060 - 2.7240|
Russia has made more money than Saudi Arabia from the production cut pact this year, while the Saudis have reduced output three times the volume Russia has cut
Natural gas markets went back and forth during the trading session on Friday, as we continue to see a lot of noise in general. At this point, the market looks very likely to be very noisy but have a lot of bullish pressure underneath.
The gold markets have initially pulled back a bit during the trading session on Friday but have also bounced from the lows. At this point, it looks as if gold is trying to build up a little bit of a basin decide whether or not it can continue to go higher on the longer-term charts.
The British pound has remained rather resilient during the week, as we continue to hang around the ¥140 level. At this point, it looks as if the market is trying to build up the necessary momentum to finally go higher.
The Euro initially fell during the week but then turned around to rally as the market simply went nowhere. It looks as if we are trying to find a bit of support at the 1.10 level which would make sense as it is a large, round, psychologically significant figure.
The Australian dollar has fallen during most of the week but has also seen a nice bounce from previous areas of interest, suggesting that they are trying to build up enough momentum to turn this thing around.
The US dollar rallied a bit during the trading session on Friday the in the week on a positive note, as Larry Kudlow has suggested that the US and China are making progress on “Phase 1” of the trade deal.
The British pound is very little during the trading session on Friday, as the market is struggling with the 1.29 handle. We are currently trying to build a bullish flag, but at this point most of what we have is noise.
The early strength didn’t last and the markets turned lower after the IEA said on Friday, OPEC and its friends face stiffening competition in 2020, adding urgency to the oil producer group’s policy, according to Reuters.
Oil prices gained on Friday after OPEC's forecast for oil demand next year fuelled hopes that the producer group and allies will maintain supply cuts when they meet to discuss policy on output next month. Optimism that the United States and China may soon sign an agreement to end their trade war helped support prices after White House economic adviser Larry Kudlow said a deal was "getting close", citing what he called very constructive discussions with Beijing. West Texas Intermediate crude was up 21 cents, or 0.4%, at $56.98 a barrel, after falling 0.6% in the previous session.
The economic calendar shifts focus to the U.S Dollar. Following Powell’s positive outlook on the economy, retail sales will need to impress…
New, deep-water production has come online from the Brazilian pre-salt Santos Basin. Shell Brasil Petróleo Ltda. (Shell Brasil) and its consortium partners today announced the start of oil and natural gas production at the P-68 floating production, storage, and offloading unit (FPSO), located in BM-S-11A Concession in Berbigão, Sururu and West Atapu.
The European Investment Bank said on Thursday it would stop funding fossil fuel projects at the end of 2021, a landmark decision that potentially deals a blow to billions of dollars of gas projects in the pipeline. The bank's new energy lending policy, which it said was approved with "overwhelming" support, will bar most fossil fuel projects, including traditional use of natural gas. "This is an important first step - this is not the last step," EIB vice president, Andrew McDowell told reporters in a call.
Natural gas prices whipsawed initially moving average on Thursday, following a smaller than expected build in natural gas inventories reported on Thursday by the Department of Energy. Natural gas prices whipsawed and rose but settled off the highs of the trading session. Medium-term momentum has turned negative as the MACD (moving average convergence divergence) index generated a crossover sell signal.
The S&P; 500 it almost nothing during the trading session again on Thursday as we simply kill time just below the 3100 level. That being said though, it is a bullish sign in the sense that we haven’t pulled back, and it looks as if the market is willing to digest the gains.
Although the markets are most certainly consolidating, the fact that buyers continue to come into the crude oil market is somewhat encouraging. Because of this, it’s very likely that the market will eventually try to reach the top of the larger consolidation range that we have been in.
Natural gas markets gapped higher during the open on Thursday as we continue to see a lot of volatility in this market. That makes sense, because quite frankly we have a lot of crosswinds going on at the same time.
Crude oil is steady, as West Texas Intermediate is trading around the $57 level. Investors are keeping an eye on EIA crude inventories, which will be released at 16:00 GMT.
The AUD/USD is breaking the support trend lines (dotted blue), which could indicate the completion of the wave 4 (purple) and the start of a downtrend.
The key market driver on Thursday is the prediction by an OPEC official about lower-than-expected U.S. shale production growth in 2020. However, this is stark contrast with forecasts by the U.S. Energy Information Administration (EIA) on Wednesday that U.S. oil production is on course to hit new records this year and next.
Yes, you read that right. Despite all the bearish developments that we described in the previous analyses, and despite myriads of bearish factors that remain in place for the following months, it seems that the white metal is about to rally.
Natural Gas Intelligence (NGI) is reporting that a survey of responses as of Wednesday showed expectations clustering around a range between minus 9 Bcf and plus 9 Bcf.
With the index trading sideways-to-slightly higher this week, the direction of the December U.S. Dollar Index on Thursday is likely to be determined by trader reaction to the main 50% level at 98.095.