The British pound/U.S. dollar currency pair gained 0.683 percent in the last 5 days. The single currency is trading at 1.1231 after the Fed decided to keep rates unchanged at its latest monetary policy meeting on Wednesday, Sept. 21. The market had already priced in a cautious Fed, but Chair Yellen's speech at the Jackson Hole central bank summit in late August raised the possibility of an interest rate hike.
Stock markets headed for their biggest weekly gain in two months on Friday after a week of central bank meetings that left investors still unconvinced that U.S. policymakers intend to put an end to an era of ultra-low interest rates.
Saudi Arabia has offered to reduce oil production if rival Iran agrees to cap its own output this year, in a major compromise ahead of talks in Algeria next week, four sources familiar with the discussions told Reuters.
Saudi Arabia is making an incredible offer to try to close the deal on a production freeze at the meeting in Algiers. The word on the street is that Saudi Arabia is offering to cut its oil production if Iran agrees to freeze theirs.
Crude oil prices rose about 2% on Thursday, rallying for a second day after a surprise U.S. crude inventory drop and ahead of talks next week between OPEC and other oil producers on curbing oversupply.
The energy complex are trading higher after the EIA released its latest weekly oil inventory report. The data showed Total Crude & Product stocks decreased by 6.034/mmbls to 1390.917/mmbls for week ending Sept. 16. Looking at the year-on-year for Total Crude & Product stocks we see we are now 93.2/mmbls above last year’s level for this time of the year and above the five-year average by 242.9/mmbls.
European markets were flat on Tuesday and this could rollover into the new trading day if market participants remain on the side-line ahead of the Fed meeting. Although Wall Street painted a similar static picture to Europe, some direction could be achieved if the Fed takes action or provides further clarity on U.S. rate hike timings.
We've been searching so long to find an answer. Will the Federal Reserve have one? Crude, like every other market, is chopping around waiting for the Federal decision on interest rates. While it seems unlikely they will raise rates in September, the suspense has been killing liquidity in the market. Oil prices swing on obscure headlines and sometimes move with the dollar and other times do not.