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Analytical Forex forecast for USD/CAD, USD/JPY, gold and oil for Tuesday, May 21, 2024
USD/CAD, currency, USD/JPY, currency, Brent Crude Oil, commodities, WTI Crude Oil, commodities, Gold, mineral, Analytical Forex forecast for USD/CAD, USD/JPY, gold and oil for Tuesday, May 21, 2024 USD/CAD: National Bank of Canada announced an increase in housing affordabilityThe USD/CAD pair is showing moderate growth, moving away from the local lows reached on April 10 and updated at the end of last week. Currently, the instrument is testing the 1.3635 mark for an upward breakdown, while market participants are waiting for new drivers to appear.Inflation data for April will be published in Canada today. According to preliminary forecasts, the annual consumer price index will decrease from 2.9% to 2.7%, continuing to move towards the regulator's target levels of about 2.0%. On a monthly basis, the indicator is expected to decrease from 0.6% to 0.5%.The National Bank of Canada noted an improvement in the real estate market. Mortgage payment as a percentage of income at the median house price in the first quarter of 2024 decreased by 3.1%, reaching 58.9%, which is the best quarterly performance since 2019. The greatest improvements are observed in Toronto, Vancouver and Victoria due to lower prices per square meter of housing, lower mortgage interest rates and an increase in median incomes. Analysts believe that the current monetary policy of the Bank of Canada, aimed at preserving the cost of borrowing, indicates a possible transition to "dovish" rhetoric, which will support demand for housing.Resistance levels: 1.3650, 1.3675, 1.3700, 1.3730.Support levels: 1.3616, 1.3580, 1.3550, 1.3524.USD/JPY: on the eve of the publication of Japanese trading indicatorsDuring the Asian session, the USD/JPY pair shows a short-term uptrend, returning to the highs recorded on May 1, and is trading around the 156.44 mark.After the recent strengthening last week, the yen weakened again due to the intervention of the Bank of Japan: the volume of interventions was less than at the beginning of the month, and over the past four trading sessions, the exchange rate has almost returned to previous levels. Macroeconomic data also failed to support the Japanese currency: in March, the index of business activity in the services sector fell by 2.4%, although analysts expected an increase of 0.1%. Japan's foreign trade data will be published tomorrow at 01:50 (GMT+2): experts expect exports to increase by 11.1% compared to the previous 7.3%, and imports to grow by 9.0% after a decrease of 4.9% earlier, which will lead to an adjustment of the trade balance to -339.5 billion yen after the previous 366.5 billion yen.Resistance levels: 156.90, 158.50.Support levels: 155.90, 153.60.Gold market overviewThe XAU/USD pair is showing a corrective decline, moving away from the record highs reached at 2450.00. During the Asian session, the instrument is testing the 2415.00 mark for a downward breakdown, in anticipation of the emergence of new market drivers. Investors' attention is focused on tomorrow's minutes of the US Federal Reserve meeting and April inflation statistics from the UK. The consumer price index is expected to decline from 3.2% to 2.1%, approaching the target levels of the Bank of England. If these forecasts are confirmed, the probability of an interest rate cut by the British regulator in June will increase significantly. In addition, the Bank of Canada will also present inflation data, and analysts predict a decrease from 2.9% to 2.7%, which is still significantly higher than the regulator's target level.The growth in demand for gold is supported by concerns about increased geopolitical tensions in the Middle East. The situation worsened after reports of the death of Iranian President Seyid Ibrahim Raisi in a plane crash, which increased uncertainty over a possible change in the country's foreign policy. Additional support for gold is provided by the recovery of economic activity in China, where the authorities announced new measures to stabilize the affected real estate sector. Recall that China is one of the largest importers of gold, and the People's Bank of China is actively increasing its gold and foreign exchange reserves.Resistance levels: 2431.44, 2450.00, 2470.00, 2500.00.Support levels: 2400.00, 2378.39, 2353.79, 2336.50.Oil market overviewDuring the Asian session, the price of WTI Crude Oil continues to develop the downward momentum that began the day before. Quotes declined from the highs reached on May 1, amid the strengthening of the US dollar. Market participants expect an early interest rate cut from the European Central Bank (ECB) and the Bank of England in June. It is also assumed that the US Federal Reserve System (FRS) will take measures to ease monetary policy, but analysts do not predict a transition to a softer exchange rate until September.Investors are looking forward to the OPEC+ meeting, which will be held on June 1. Analysts believe that representatives of the cartel will discuss the extension of current restrictions on oil production for the second half of the year, which can support price stability in the face of a weak recovery in global demand. In addition, the oil market is under the influence of political uncertainty in Iran after the deaths of President Syed Ibrahim Raisi and Foreign Minister Hossein Amir Abdollahian in a helicopter crash in East Azerbaijan province. Iran is actively increasing its hydrocarbon production, ranking third in terms of volume among OPEC members, and its main buyer is China. Despite the political changes in Iran, experts are confident that this will not lead to significant changes in the oil market. The premium for geopolitical risk is now tending to zero, compared with $12 per barrel in October and $2 in April, when there were mutual attacks between Iran and Israel.Resistance levels: 79.07, 80.00, 81.00, 82.00.Support levels: 78.00, 77.00, 76.00, ...
Analytical Forex forecast for EUR/USD, USD/JPY, silver and oil for Thursday, May 16, 2024
EUR/USD, currency, USD/JPY, currency, Brent Crude Oil, commodities, WTI Crude Oil, commodities, Silver, mineral, Analytical Forex forecast for EUR/USD, USD/JPY, silver and oil for Thursday, May 16, 2024 EUR/USD: GDP of Eurozone grew by 0.4% in the first quarterThe EUR/USD currency pair shows a corrective movement, holding at 1.0881, thanks to recently published macroeconomic data.In the first quarter, eurozone GDP grew from -0.1% to 0.3%, in line with forecasts and reaching an annual growth of 0.4% against the previous 0.1%. This trend is supported by an increase in the March industrial production index, which increased by 0.6% month-on-month, exceeding expectations set at 0.5%, and reducing the annual decline from -6.3% to -1.0%. On Friday, the market's attention will be focused on consumer inflation data: it is assumed that in April the consumer price index will maintain the level of 0.6% monthly and 2.4% per annum. The day before, Claes Noth, head of the Dutch Central Bank, expressed the opinion that price pressures in the eurozone are changing, which increases the chances of achieving the inflation target next year. In turn, Pierre Wunsch, the head of the Central Bank of Belgium, indicated that the European Central Bank is considering a two-fold reduction in interest rates.Resistance levels: 1.0920, 1.1010.Support levels: 1.0840, 1.0710.USD/JPY: economic slowdown in Japan continuesThe USD/JPY currency pair continues to follow the downward trend set a day earlier, with quotes near the 153.82 mark and an update of the minimum values since May 6.Analysts attribute the strengthening of the yen to possible currency interventions by the Bank of Japan against the background of weak macroeconomic indicators of the country: GDP for the first quarter decreased by 0.5%, which turned out to be worse than analysts' expectations, which predicted a decrease of 0.3% and stagnation at 0.0%. The annual GDP index fell by 2.0% compared to the previous indicator of 0.0%. The main factor in the deterioration of economic dynamics was the decline in consumer spending, which deepened from -0.4% to -0.7% in the first quarter. Nevertheless, in March, industrial production showed an increase from 3.8% to 4.4% month-on-month and a decrease in the annual decline from -6.7% to -6.2%. A report from the Bank of Japan is expected to be published next week, which will provide additional information on the extent of possible currency interventions.Support levels: 153.00, 150.80.Resistance levels: 154.80, 156.80.Silver market overviewThe price of silver has moved away from the peak values of February 2021, reached at the beginning of the trading session on Thursday, and has now stabilized around the 29.44 mark.Silver quotes received support from the latest US inflation data for April, which met analysts' expectations and increased the likelihood of an early rate cut by the US Federal Reserve. The annual consumer price index decreased from 3.5% to 3.4%, remaining above the target level of 2.0%. The monthly rate slowed from 0.4% to 0.3%. Excluding food and energy resources, the base index also decreased from 3.8% to 3.6% per annum and from 0.4% to 0.3% monthly. In addition, the market noted an additional decrease in the index of business activity in the manufacturing sector of the Federal Reserve Bank of New York in May from -14.3 to -15.6 points, while forecasts were -10.0 points. US retail sales stagnated in April after rising 0.6% in the previous month, although an increase of 0.4% was expected.Resistance levels: 29.84, 30.15, 30.50, 30.75.Support levels: 29.35, 29.00, 28.80, 28.52.Oil market overviewLast week, WTI crude oil prices tested the level of 77.75 and ended the day above this mark yesterday, supported by a reduction in hydrocarbon reserves and a slowdown in inflation in the United States.According to a report by the Energy Information Administration of the U.S. Department of Energy (EIA), over the week, the volume of strategic oil reserves in the United States decreased by 2.508 million barrels, which significantly exceeded analysts' expectations of a decrease of 0.400 million barrels, and previous data showed a decrease of 1.362 million barrels, which contributed to the growth of quotations. Oil prices are also supported by the weakening of the US dollar, due to a decrease in inflationary pressure: in April, the consumer price index fell from 0.4% to 0.3%, falling below the expected level of 0.4%, and the base index was 0.3% instead of the expected 0.4%. If the inflation rate continues to slow down, the officials of the Federal Reserve System may take a softer position, which will entail pressure on the national currency and further strengthen energy prices.Resistance levels: 81.93, 84.53, 87.47.Support levels: 77.75, 75.60, ...
Analytical Forex forecast for EUR/USD, AUD/USD, cryptocurrencies and oil for Tuesday, May 14
AUD/USD, currency, EUR/USD, currency, Ethereum/USD, cryptocurrency, Brent Crude Oil, commodities, WTI Crude Oil, commodities, Analytical Forex forecast for EUR/USD, AUD/USD, cryptocurrencies and oil for Tuesday, May 14 EUR/USD: Germany's April CPI is in line with analytical forecastsDuring the morning trading session in Asia, the EUR/USD pair showed fluctuating movements, remaining near the 1.0785 level. Investors remain cautious, refraining from active trading until the publication of important economic data from the United States and the eurozone.In April, German inflation was in line with expectations, noting an increase of 0.5% and confirming an annual rate of 2.2%, which is consistent with economists' forecasts. The harmonized consumer price index, adapted to EU standards, showed an acceleration from 2.3% to 2.4%. According to preliminary estimates, the Spanish consumer price index may increase from 3.2% to 3.3%. Important data on eurozone GDP for the first quarter are expected on Wednesday at 11:00 (GMT+2), forecasts indicate stability of the indicator at the level of 0.3% quarterly and 0.4% annual growth. The market's attention will also be focused on the indicators of industrial production, which, according to forecasts, may show a decrease of 0.2% in monthly dynamics after the previous growth of 0.8%, and an improvement in the annual index from -6.4% to -1.8%.Resistance levels: 1.0810, 1.0890.Support levels: 1.0760, 1.0660.AUD/USD: Australian authorities predict a decrease in inflation by the yearThe AUD/USD pair is slightly losing ground, stabilizing near the 0.6600 level. Amid the lack of significant news, the market is in a state of expectation, where investors are weighing their steps ahead of key events, especially in the United States, where inflation data for April is expected to be published tomorrow.In Australia, data on the state of the labor market for April will be announced on May 16: analysts predict an increase in employment by 23.7 thousand people, after a decrease of 6.6 thousand in the previous month. At the same time, it is assumed that unemployment will increase from 3.8% to 3.9%. The presentation of the budget plan is also in the focus of investors' attention today. According to recent forecasts, inflation should fall to 3.75% by mid-2024 and to 2.75% by mid-2025, re-entering the Reserve Bank of Australia's target range. However, the authorities said last Sunday that it is expected that the overall inflation rate could reach 2.0-3.0% by the end of this year, while representatives of the RBA believe that the indicator may remain at 3.6% in the first quarter and rise to 3.8% by June. Finance Minister Jim Chalmers stressed that the budget will pay special attention to measures to counter price pressures that have a significant impact on the cost of living of the population.Resistance levels: 0.6622, 0.6646, 0.6667, 0.6700.Support levels: 0.6600, 0.6578, 0.6558, 0.6540.Cryptocurrency market overviewLast week, the ETH/USD rate continued to decline, following the general trend of the market, under the influence of both monetary and regulatory factors that put pressure on other key assets. Investors are expressing concern about the possible continuation of high rates by the US Federal Reserve System until the end of the year, despite the slowdown in the labor market. US inflation data for April, which will be published on Wednesday, is expected to show a decrease in the index, but this is unlikely to change the strict position of the regulator.ETH is also under additional pressure from the uncertainty surrounding future decisions by the U.S. Securities and Exchange Commission (SEC). Soon, on May 23 and 24, the deadline for reviewing applications from VanEck and ARK Invest for the creation of spot funds based on ETH expires, but forecasts regarding a positive result are disappointing. Unlike previous cases of approval of bitcoin ETFs, there is no information about consultations between the regulator and representatives of interested companies, which may lead to a possible postponement or refusal to consider applications for ETH ETFs until the autumn. In addition, there are signs that the American authorities have begun to consider ETH as an unregistered security and are collecting information about the activities of its developers. In this context, the co-founder of Ethereum, Joseph Lubin, pointed out that the SEC had actually reclassified ETH as an illegal asset without notifying the public.Resistance levels: 3125.00, 3281.25, 3437.50.Support levels: 2812.50, 2500.00, 2187.50.Oil market analysisDuring the Asian trading session, WTI Crude Oil prices show mixed changes. Some support for prices is provided by the anticipation of the publication of the OPEC report, scheduled for today at 13:00 GMT+2. At the same time, many investors refrain from opening new positions, preferring to wait for the US inflation data, which are expected tomorrow at 14:30 at the same time.In the context of the expected OPEC report, market participants hope to find out updated forecasts for oil production volumes. For example, since the beginning of the year, several countries, including Russia and Saudi Arabia, have initiated voluntary production cuts totaling 2.2 million barrels per day in order to maintain market stability. Iraqi Deputy Oil Minister Basim Mohammed Khudair expressed Iraq's commitment to the OPEC+ agreement, but pointed out difficulties with its implementation, doubting the possibility of extending current production restrictions. Traders also expect information about the situation in the Middle East, which could lead to significant supply disruptions if the conflict worsens. The upcoming OPEC meeting is scheduled for June 1, and according to analysts, there are no changes in production plans. The International Energy Agency predicts that oil demand in 2024 will reach a record of more than 103 million barrels per day.Resistance levels: 79.07, 80.00, 81.00, 82.00.Support levels: 78.00, 77.00, 76.00, ...
Analytical Forex forecast for NZD/USD, USD/CAD, Gold and Oil for Monday, May 13, 2024
USD/CAD, currency, NZD/USD, currency, Brent Crude Oil, commodities, WTI Crude Oil, commodities, Gold, mineral, Analytical Forex forecast for NZD/USD, USD/CAD, Gold and Oil for Monday, May 13, 2024 NZD/USD: the pair checks the 0.6600 level for a possible declineThe NZD/USD pair is showing mixed dynamics, holding near the 0.6000 level and trying to strengthen the "bearish" trend that emerged at the end of last week. At this stage, investors are being cautious, refraining from opening new positions until the publication of US inflation data, which is expected on Wednesday. It is predicted that core inflation for April may show a decrease to 3.6% per annum from the previous 3.8% and to 0.3% monthly from 0.4%. Retail sales statistics will also be released, which is important for assessing domestic consumption, which is a key element of inflation risks. Total sales are expected to fall from 0.7% to 0.4%, while the figure excluding cars will decrease from 1.1% to 0.2%.Earlier this week, support for the NZD/USD pair came from recently released data. The index of business activity in the manufacturing sector of New Zealand showed an increase in April, increasing from 46.8 to 48.9 points. Although successive interest rate increases since October 2021 have led to a slowdown in economic activity, price pressures are likely to remain stable due to high levels of migration, which exceeded forecasts by the Reserve Bank of New Zealand (RBNZ). Also, data from China released over the weekend showed an acceleration in the consumer price index in April from 0.1% to 0.3% year-on-year and an improvement from -1.0% to 0.1% month-on-month. Although the producer price index remained in negative territory, its decline slowed from -2.8% to -2.5%. Additionally, investors' attention was drawn to a slight decrease in the index of activity in the service sector from Business NZ in April from 47.2 to 47.1 points. RBNZ's inflation expectations for the second quarter were adjusted from 2.5% to 2.33%, which may contribute to RBNZ's softer monetary policy in the near future.Resistance levels: 0.6030, 0.6047, 0.6082, 0.6100.Support levels: 0.6000, 0.5975, 0.5950, 0.5920.USD/CAD: the expectation of sideways dynamics in the near futureIn the Asian trading session, the USD/CAD pair is actively testing the 1.3680 level, aiming to overcome it upwards. Meanwhile, market activity remains at a moderate level, as participants from the United States expect new catalysts for price changes during the week.On the other hand, Canadian traders are carefully studying employment data: April figures indicate an increase in the number of employed by 90.4 thousand, which significantly exceeds the previous value of -2.2 thousand and analysts' expectations of 18.0 thousand. The average hourly wage in the country decreased from 5.0% to 4.8%, while the unemployment rate remained at 6.1%, despite forecasts of its increase to 6.2%.Resistance levels: 1.3700, 1.3730, 1.3762, 1.3800.Support levels: 1.3650, 1.3616, 1.3580, 1.3550.Gold market analysisThe XAU/USD pair is experiencing a correction, retreating from the peak values on April 22, which were updated last week. Currently, gold is trying to overcome the support level of $ 2350.00 in anticipation of new factors that may affect the price movement.The gold market continues its upward trend, despite a decrease in net speculative positions, according to the latest report from the U.S. Commodity Futures Trading Commission (CFTC). Over the past week, the volume of net speculative positions decreased to 199.6 thousand from 204.2 thousand, reflecting a decrease in investor activity in anticipation of new catalysts in the market. The positions of the bulls, backed by real assets, amounted to 189,194 thousand against 26,062 thousand for the bears. Sellers increased their positions by 1,028 thousand, while buyers reduced them by 2,979 thousand amid expectations of new movements in gold.Resistance levels: 2378.39, 2400.00, 2431.44, 2450.00.Support levels: 2353.79, 2336.50, 2320.00, 2300.00.Oil market overviewBrent Crude Oil prices are experiencing a correction, holding above the $82.00 mark. The easing of geopolitical tensions in the Middle East is affecting the situation: Hamas representatives have expressed readiness for a ceasefire, and the Houthis have reduced the number of attacks on ships in the Red Sea.Meanwhile, Iraqi Oil Minister Hayyan Abdul Ghani announced the country's intention to withdraw from the OPEC+ agreement on production cuts, which caused a violent reaction. However, the next day, his deputy, Basim Mohammed Khudair, clarified that the problem lies in the difficulty of meeting the current limits, which have a negative impact on the Iraqi economy. The question of Iraq's position on the future OPEC+ agreement remains open, but it is already clear that many participants are ready to increase production, which may have an impact on the market.Resistance levels: 83.20, 86.10.Support levels: 81.50, ...

Articles about financial markets

U.S. vs OPEC+: who will win the oil race
Brent Crude Oil, commodities, WTI Crude Oil, commodities, U.S. vs OPEC+: who will win the oil race OPEC+ is markedly reducing oil production - in fact, the exporting countries will pump about 1 million barrels less per day. We have written earlier on why this is so.As a result, supply at the market has become lower, so prices have gone up and are approaching $100 per barrel again.What will the U.S. do after the OPEC+ statement?The coming energy crisis and the high inflation it causes are scaring the whole world, but it's the States that are worried the most right now:expensive oil means expensive fuel;it's causing prices of almost all commodities to rise;inflation is going up - the Fed keeps tightening policy;high key interest rates are pushing the U.S. closer to recession;in addition, high fuel prices can cause social discontent.To prevent this, the U.S. is trying to influence the largest oil producers and keep prices down. Otherwise, the Democrats will most likely not win the congressional elections. They are due in a month.The U.S. started to prepare in advance: President Biden flew to Saudi Arabia this summer and persuaded the U.S. to bring down oil prices. But it did not work out very well: OPEC acts in its own way and does not want to listen to Americans. As a result, the failed negotiations with the Saudis have further diminished the credibility of Biden and the Democrats' ability to influence oil, inflation and economic stability in the United States.However, the Biden administration is not giving up; they have a few more options - rather radical ones - on how to lower oil prices.Additional Oil ReleaseThe safest, though least effective, option is to further draw oil from strategic U.S. storage facilities. In response to OPEC+'s decision to cut production, Biden announced that the U.S. would release 10 million barrels of oil, even as storage reserves are depleted.That would be all well and good, but the announcement had little or no effect on oil prices, especially compared to the previous similar decision to release 180 million barrels to the market. No wonder: the volumes are not comparable.In addition, since U.S. storage reserves are running out, there is a risk that they will not be enough for a rainy day: in case of sharp reductions in domestic production (for example, during hurricanes in the Gulf of Mexico) or imports (if OPEC+ countries reduce exports).Reducing military aid to the ArabsDemocrats have drafted a "Tense Partnership" bill in response to OPEC+ and specifically the alliance's leaders, Saudi Arabia and the UAE. They are accused of "a hostile act against the United States" and "siding with Russia in the conflict with Ukraine."As revenge, the U.S. could withdraw its troops from these countries and stop supplying weapons and other military aid to fight neighboring states and terrorists. This includes protecting oil infrastructure from attack.This option also has disadvantages: without U.S. military support in these countries, there could be problems that would inevitably affect the global oil supply. After all, if military actions or terrorist attacks affect the oil fields or storage facilities of Saudi Aramco, oil will cost even more, and such attacks occur quite often.So even if the Saudis and the UAE will not reduce exports in response to the withdrawal of troops and reduction of arms supply, there is a good chance that sooner or later the fighting will make prices go up.In addition, Saudi Arabia has already planned to prepare for a possible conflict with the United States. For example, in the spring the Saudis said they were going to explore ways to move away from the petrodollar - that is, not to use bucks in the black gold trade. In this case, the demand for the dollar could fall dramatically, especially if other oil-exporting countries do the same.NOPEC: Conflict with OPEC+Amid disagreements with OPEC, the U.S. may return to the "oil production and export cartel law," NOPEC, to have more leverage on oil exporters.In this case, U.S. courts will be able to consider antitrust suits against OPEC+ and in general against countries involved in cartel collusion in the oil market. Under the decision of their own courts, the U.S. will be able to impose sanctions, confiscate property of these countries and put pressure on them in other ways. At the same time, the U.S. itself will indicate what is legal and what is not, thus assessing any actions of the countries that regulate oil production and prices.This option also has a disadvantage: sanctions on exporters would also hit the U.S. itself. If oil prices become lower, the U.S. oil industry will also be hard hit: domestic production will decrease and it will have to import more. And since the market is competitive, and the U.S. in this case will be "enemies of OPEC +", they will have to buy oil more expensive.So, even if the U.S. takes a drastic step - provoking a conflict with Saudi Arabia or the UAE, or starting a sanctions war with OPEC+ - all this will have a negative impact on themselves.Can't sanctions be lifted on Venezuela?As we can see, the U.S. has almost no normal options left to influence the oil market. Nevertheless, the U.S. says it is not going to remove sanctions from Venezuela yet, despite the fact that this would help get more oil on the market and lower oil prices. We may see some new rhetoric in this regard, but no change for now.The Iran deal has also been stalled so far: there is no news or movement on it. Although it is possible that disagreements with the Saudis may attract the U.S. to support Iran, because these are the two sides of the Arab conflict.On the one hand, Iranian oil would help to increase supply, but there is a nuance here as well: the reserves in this country are not grandiose, moreover, most of the oil is already exported in circumvention of sanctions.So what to do with Brent and WTI crude oil prices in 2022?If we discard all of the above options, then all we have to do is sit back and watch oil go up in price. The outlook is also bad: even if the world starts a recession and the demand for oil decreases, OPEC+ is already reducing production and adjusting to negative expectations, and also the supply from Russia may decrease if the embargo comes into force.And if that's the case, U.S. inflation will be high. And given the strong labor market, the Fed may raise the rate even more than 1.25% by the end of the year, and it is not certain that it will slow down next year as well. If rates remain high for a long time, the risk of recession in the U.S. is very high, and stocks and cryptocurrencies will have no fuel for growth. As a result, the economy will have a hard time: liquidity is scarce.If the U.S. starts to act sharply, the dollar is at risk: the "oil" countries can give it up to reduce dependence on the United States. But if the U.S. does nothing, tightening Fed policy will keep the dollar very strong - though at the cost of high inflation and recession. If you are interested in WTI analytics, we recommend you to visit the analytics page, where you can find the latest analytics on Forex from top traders from all over the world. These analytics will be useful both for beginners and professional traders. The Forex signals service makes it much easier for beginners to make their first steps in trading on the financial markets. The latest WTI forecasts and signals contain support and resistance levels, as well as stop-loss ...
"Ghost Armada": how does Iran circumvent sanctions on oil trade?
Brent Crude Oil, commodities, WTI Crude Oil, commodities, \ In 2019, the "sub-sanctioned" Iran began to increase oil supplies in circumvention of sanctions. Mostly tankers went to China and the Mediterranean: Syria and Turkey. And by the beginning of 2022, the fleet for transporting sanctioned Iranian and Venezuelan oil had tripled. It accounted for approximately 400 million barrels per year. And such a "ghost armada" successfully undermines the business of transport companies.Why did Iranian tankers get such a name?Last year, The Mail on Sunday reported: 123 Iranian vessels circumvent sanctions on oil trade. They change their location to GPS and create the appearance that they are anchored at sea, but at this time they are loading/unloading at the port. They also actively forge documents, use flags of different countries, disable identification systems and use front companies. Oil is often loaded onto several vessels and mixed before reaching its destination. This is also the case with "toxic" Russian oil.At the same time, Iran has a whole "underground" financial system for trade bypassing sanctions, writes the WSJ. It includes accounts in foreign banks, intermediary companies outside the country and firms that coordinate prohibited trade. The annual turnover is estimated at tens of billions of dollars.And Iranian banks attract affiliated firms to manage trade under sanctions. They register "daughters" outside the country, become trusted for Iranian traders, and then trade with foreign buyers of Iranian oil in foreign currency through accounts in foreign banks.Will the "Iranian Armada" help Russia?She is already helping her to circumvent sanctions, writes the Daily Mail. The international non-profit organization United Against Nuclear Iran (UANI) accuses the Iranian navy of cooperating with Russian oil companies. Allegedly, Russian oilmen are using "Tehran's black market vessels" to circumvent the export ban. And the US, the EU and the UK are even calling for the formation of a team of "ghostbusters".At least 5 Iranian "ghost armadas" are transporting oil from Russia to China and India, according to UANI. And recently, the WSJ reported that Zamanoil from the UAE was linking Iranian and Russian oil workers. The US Treasury accused her of working with the Russian government and Rosneft on the supply of Iranian oil to Europe.However, at the end of March, Iran denied a "secret offer from Russia" to help it circumvent sanctions in exchange for support in concluding a nuclear deal. And in May, he noted that he could not be a competitor of Russia in the global oil and gas market. The country has its own regular customers, and Iran sells the maximum amount of oil.So officially, Iran does not seem to be planning to use its "army of ghosts" to help for the benefit of Russia, despite the fact that these countries have "converged" before. But then there was no question of an embargo on Russian oil and there was no ban on ship insurance. In the new reality, the actions of the "ghost armada" are quite difficult to ...
Weekly review. January 10, 2022
EUR/USD, currency, US Dollar Index, index, Brent Crude Oil, commodities, Gold, mineral, Weekly review. January 10, 2022 The year 2022 on world markets will largely be determined by the tightening of monetary policy in the United States, and the first week of the new year confirmed this. The minutes of the Fed's December meeting published last week showed a significant tightening of the position of the regulator's representatives – Fed members believe that the rate can be raised as early as March, and also see a faster reduction in the balance sheet as appropriate. Representatives of the regulator believe that the current economic conditions are already in many ways conducive to tightening the labor market, some even noted the recovery of the labor market already sufficient for such actions, although the majority still expects further improvement in the labor situation. Against this background, it is worth noting the publication of December labor data in the United States, which came out ambiguous. On the one hand, employment in December increased by only 200 thousand. The Bloomberg consensus forecast assumed an employment growth of 450 thousand, and the actual growth rate of the indicator was the lowest since the beginning of 2021. Nevertheless, in many respects such weak employment growth is explained by seasonal adjustment, and the unemployment rate in December fell more than expected. Thus, the indicator has updated the next lows since the beginning of the pandemic, dropping to 3.90% against the expected 4.10%. The unemployment rate continues to approach a historic low of 3.40%, and labor statistics have further increased fears in the market of an imminent tightening of the PREP in the United States. As a result, on Friday, the yields of ten-year US treasuries at the moment exceeded 1.80% per annum - the maximum since the beginning of the pandemic. Today they have returned to these levels again.This week, the dynamics in the market will continue to be determined by expectations for the actions of regulators - investors will follow the statements of representatives of the Fed and the ECB, as well as the publication of price data in the United States for December. Statistics published last week showed an increase in inflation in the EU to 5.00% YoY. As a result, the topics of price growth in December updated the historical maximum, while analysts expected a slight slowdown in price growth. The situation on the supply side also has high inflation in the United States. The December business activity indices indicated a slight easing of logistical problems, however, the further deterioration of the epidemiological situation again intensified disruptions in logistics chains, which does not lead to a significant slowdown in price growth. The FAO World Food Price index fell in December for the first time since July, but food inflation remains at elevated levels. Against this background, US inflation data is likely to continue to bring the Fed rate hike closer, intensifying the negative in the markets.The main event for the oil market in early 2022 was the OPEC+ meeting. However, as expected, it was decided to stick to the current plan to increase production. Nevertheless, the cartel lowered its forecasts for a surplus in the oil market, which allowed Brent crude futures to exceed the level of $80/bbl. Moreover, against the background of interruptions in the supply of black gold from Kazakhstan and Libya, quotations were close to $83/bbl. However, at the end of the week they declined from these levels, today Brent futures are growing by 0.35% and are trading around $82.05/bbl. The main negative for oil this week may be related to the potential strengthening of the dollar amid expectations of a tightening of the PREP in the United States. However, in the absence of a significant strengthening of the dollar, Brent futures may still exceed the levels of $83/bbl– - the quotes may be supported by another weekly decline in oil ...
Oil prices rise after the end of the OPEC+2 meeting
Brent Crude Oil, commodities, Oil prices rise after the end of the OPEC+2 meeting Oil is getting more expensive on Friday morning. By 8.25 GMT, the price of a barrel of Brent oil rose to 70 dollars 89 cents, or 1.75%. The price of a barrel of WTI oil rose to 67 dollars 71 cents or 1.22%. According to the results of trading on Thursday, these oil standards rose by 1.2% and 1.4%, respectively. Investors evaluate the results of the last meeting of the countries participating in the OPEC+ agreement. Some market participants expected that the alliance would decide to reduce the volume of oil production. However, OPEC+ retained the current parameters of the deal. This means that the alliance will continue to increase the volume of raw material production by 400,000 b/s every month. At the same time, the participants of the meeting stated that they could make a different decision on the volume of production at any time. Everything will depend on the situation on the oil market and in the global economy. They noted the persistence of uncertainty. It intensified after the appearance of the next coronavirus strain omicron. Investors liked the alliance's statement about the possible holding of an extraordinary meeting, if the situation requires ...
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