Commodities 18.10.2018: BRENT, WTI, CAD, RUB
Yesterday traders were overwhelmed by the EIA report on crude oil inventories in the US. The report showed that the stockpiles of crude oil in the United States surged by almost 6.5 million barrels last week at a much faster pace than expected.
Analysts predicted a rise of 1 million 600 thousand barrels while markets expected the stockpiles to decrease in line with the API data.
Unexpected downbeat news triggered a selloff in the oil market. As a result, WTI prices plunged by 2.7% to the level of 70 dollars per barrel.
Today the commodity continues sliding. At the premarket of the American session WTI was valued at 69 dollars per barrel.
At the same time, the Brent crude oil also depreciated significantly. Its quotes fell below the level of 80 dollars per barrel. However, the North Sea benchmark is stronger than WTI. Traders acknowledged that the United States is ramping up oil production ahead of imposing embargo on shipments of Iranian oil.
Thus, the balance of global supplies in the oil market may change soon.
A fall in oil prices dented the commodity prices. Furthermore, the US dollar is extending gains. As a result, the Canadian dollar lost over 2.7% overnight, unsupported by oil prices. The USD/CAD pair approached the level of 1.3040.
Even the upbeat manufacturing sales report from Canada failed to provide enough support to the loonie.
Today traders will absorb the ADP jobs data. On the other hand, the ruble traders are in a good mood today.
The tax period in Russia provides support to the national currency. The USD/RUB pair is hovering near the level of 65.50. Elvira Nabiullina’s comments also boosted a rise in the ruble. The head of the Bank of Russia spoke about readiness to intervene in the currency market and buy the government bonds in case risks increase.
The European currencies are volatile as well.
We will tell you about it in our next edition. Stay tuned for more news.