Market analysis
Highlights:
- EUR/USD : Keeps the neutral outlook ahead of ECB meeting
- GBP/USD : Rises to 1-month highs on strong U.K. data
- USD/JPY : Gives up gains after U.S. jobs data
- USD/CAD : Drops to 6-day low as oil extends recovery
- Gold : Holds near 1-week high amid reduced chances of Sept. rate hike
- Crude Oil : Bounces off three-week lows on hopes for OPEC action
- EUR/USD : Keeps the neutral outlook ahead of ECB meeting
- GBP/USD : Rises to 1-month highs on strong U.K. data
- USD/JPY : Gives up gains after U.S. jobs data
- USD/CAD : Drops to 6-day low as oil extends recovery
- Gold : Holds near 1-week high amid reduced chances of Sept. rate hike
- Crude Oil : Bounces off three-week lows on hopes for OPEC action
Crude Oil
Bounces off three-week lows on hopes for OPEC action
Oil futures snapped a four-day losing streak on Friday, amid Russian comments favoring a production freeze, but still suffered a hefty decline for the week amid ongoing concerns over a global supply glut. Traders also assessed the likelihood of an interest rate hike at this month's Federal Reserve meeting, following weaker than expected nonfarm payrolls data. For the week, the New York Mercantile Exchange, crude oil for delivery in October ended Friday's session at $44.44 a barrel, up $1.28, or 2.97%, on the day.
Futures slumped to a three-week low of $43.00 on Thursday after weekly supply data showed a surprisingly large build in U.S. crude and distillate stockpiles and a smaller-than-expected drawdown in gasoline. Despite Friday's gains, New York-traded oil futures dropped $3.20, or 6.7%, for the week, the worst weekly loss since early July. Oil prices strengthened on Friday after Russian President Vladimir Putin said in an interview with Bloomberg that an agreement between major oil exporters to freeze output would be the right decision to support the market. Meanwhile, market players continued to focus on U.S. drilling prospects, amid indications of a recent recovery in drilling activity. Oilfield services provider Baker Hughes said late Friday that the number of rigs drilling for oil in the U.S. last week rose by 1 to 407, marking the ninth increase in 10 weeks. In the week ahead, oil traders will be focusing on U.S. stockpile data on Wednesday and Thursday for fresh supply-and-demand signals. The reports come out one day later than usual due to Monday's Labor Day holiday.
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