Oil falls in the beginning of the week after five weeks of growth
The world stock markets on Monday was dominated by caution after the major indexes reached a six-month high last week. Traders expect the short week filled with earnings reports and key economic data. Although most major financial markets will be closed on Friday in connection with the beginning of the Easter holidays, some companies in the USA will report about the incomes. Will be released American economic data on the housing market, retail sales, industrial production and trade. China on Wednesday will be the center of attention, since it publishes data on economic growth in the first quarter.
Spring meeting of the IMF ends with hopes for economic recovery. The leaders of the world of Finance has completed the spring meetings of the International monetary Fund and the world Bank on a cautiously optimistic note on the weekend. Officials expressed concern about the slowing global economy, but expressed confidence that the recovery is not far off. They referred to a shared step back from tightening monetary policy of global Central banks, along with increased incentives on the part of China and the weakening of trade tensions between Washington and Beijing.
Oil falls in the beginning of the week after five weeks of price rises. The growth of drilling activity in the United States was sufficient in order Monday to stop the rise in oil prices, while traders were looking forward to the meeting of major oil producers, which will be held this week. There were also indications that Russia wants to end the agreement on the limitation of production, which became the main factor of growth in oil prices this year. Saudi Arabia alleges that the extension is still necessary. The meeting, originally scheduled for this week, was canceled in March, mainly due to disagreements between them.
Futures on crude oil in the U.S. fell to $63,34 while Brent crude fell to $71,03. After oil prices showed another weekly increase, Baker Hughes data showed Friday that the rig count, a leading indicator of future production in the U.S. rose by two last week after a significant increase on the previous week. The longer prices remain at their current elevated level, the higher the likelihood that producers of shale oil in the US will increase production, which will cause another decline.
Material provided by FXOpen