Significant reshuffling in the oil market. In November, prices fell by almost 20 percent, but since the beginning of the year, they have risen by more than 40 percent. Today, WTI crude oil futures are making up for earlier declines and are rising above $67 per barrel. Meanwhile, they were below $65 during the previous session.
Markets now seem to be awaiting OPEC's response to the threat of a fuel demand hit from a new variant of coronavirus and the release of strategic oil reserves.
OPEC will meet on Wednesday, with another meeting with OPEC+ allies on Thursday.
Will OPEC+ back off its plans to increase production?
The group is widely expected to halt plans to increase supply by 400,000 barrels a day in January due to supply and demand factors. A new variant of the coronavirus has already caused travel restrictions.
A Reuters poll shows that even if the cartel decides to go ahead with its planned production and supply increases, it may have difficulty doing so due to capacity constraints.
Data from the American Petroleum Institute showed that U.S. crude inventories fell less than expected and gasoline inventories rose, although no change was expected.
Waiting for the December Fed decision
The currency market is trying to stabilize after the statements of Federal Reserve Chairman Jerome Powell. The Fed chief said the U.S. central bank is likely to discuss a quicker withdrawal of its massive bond-buying program at its next meeting, citing a strong economy and expectations that drivers of inflation will persist into next year. Some policymakers have called for a faster end to asset purchases and higher interest rates as U.S. inflation hit its highest level in three decades in November and the labor market steadily recovers.
Oil and natural gas overvaluations could lower inflation expectations and, over time, overall consumer inflation. And these factors are likely to be taken into account in the December Fed decision and macroeconomic projections release.
Cryptocurrencies return to the uptrend
On the cryptocurrency market, the ETH/USD exchange rate seems to be getting a chance to reach a new record high. After several days of systematic increases, the price of ethereum seems to be approaching the level of 5000 USD.
Bitcoin still costs around USD 57,000. In turn, the ETH/BTC exchange rate is at its highest since 2018.
Daniel Kostecki, Director of the Polish branch of Conotoxia Ltd. (Forex service)
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