Oil sells the OPEC fact as details emerge

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OPEC members are convening in Vienna to discuss an extension to the deal that saw a cut in production. They seem to be converging about extending the cuts by 9 months, as reports had already suggested earlier. The cuts will probably at the same scale of the previous agreement.

Prices have gone up ahead of the deal, peaking just under $52 as ministers were arriving at the summit. The reach to the upside may have triggered a selloff. Is it a “buy the rumor, sell the fact” event?

Update: USD/CAD rises with oil’s post-OPEC fall

USD/CAD is trading at 1.3433, up from lower levels. The Canadian dollar is sliding alongside the price of the black gold. Yesterday’s BOC decision was relatively optimistic, setting the pair at a lower level.

OPEC Background

The original agreement was made in November and was set to run between January and June. Since then, prices have stabilized but haven’t gone up. They were around $50 per barrel on the WTI Crude Oil.

Since then, oil production in the US picked up, reaching around 0.3 million barrels per day. This kept prices from going too high.

More: CAD: Busy 24 hours with the BOC and OPEC

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Yohay Elam – Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I’ve accumulated. After taking a short course about forex. Like many forex traders, I’ve earned the significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I’ve worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.

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