FX & CFD trading involves significant risk
Oil prices fell today, dropping below is $ 95 per barrel as the significant strengthening of the dollar has made oil more expensive for traders using other currencies. Note that the recent signs of improvement that have been seen in the employment data in the U.S., have caused speculation that the Federal Reserve may curtail its aggressive monetary policy. Traders are also influenced by comments from Charles Plosser, president of the Philadelphia Fed. Plosser expressed his desire that the Fed has slowed the pace of bond purchases in the near future. Furthermore, he added that the Fed must defend the target rate of inflation, both the top and the bottom border. In his view, the purchase of bonds, the Fed implemented more effective in the fight against deflation.
Recall that at the present time the Fed buys government bonds in the amount of $ 85 billion a month in order to keep long-term interest rates and stimulate borrowing and spending.
Meanwhile, it became known today, the Organization of Petroleum Exporting Countries (OPEC) left forecasts for demand and supply of oil unchanged. OPEC analysts warn of possible negative risks from China and the Eurozone. This is the last forecast before the scheduled meeting of the leadership of OPEC in Vienna, which will be held later in May. OPEC reported a less significant increase in demand in Q1 than in the past. Oil demand in 2013 is expected to rise by 800,000 barrels per day. Economic factors may lead to a revision of the forecast downward. OPEC has repeatedly mentioned the possible risks for the oil market due to the deteriorating situation in the euro zone. Slower growth in oil demand in China may be of particular importance, as the country is expected to be the growth engine for the world market.
The cost of the June futures on U.S. light crude oil WTI (Light Sweet Crude Oil) fell to 93.93 dollars per barrel.
June futures price for North Sea Brent crude oil mixture fell $ 2.27 to $ 102.10 a barrel on the London exchange ICE Futures Europe.
All posted material is a marketing communication solely for informational purposes and reliance on this may lead to loss. Past performance is not a reliable indicator of future results. Please read our full disclaimer.