Oil prices are trimming down gains today after substantial growth in Monday session. Brent prices met resistance at $40.48/bbl. level while WTI retreated hitting resistance at $37.56. Both benchmarks depreciated around 1percent.
The commodity is under pressure today after release of gloomy economic news from China. Foreign trade data for February came out worse-than-expected: exports fell by whopping 25.4% comparing to the same period of last year, while imports dropped 13.8% posting 16-months consecutive decline. The drop appeared to be the worst from post-crisis 2009 year.
Brent soared 6% breaking through the level of $41/bbl. in the evening session yesterday. The rally of crude prices is associated with continuing cutback of shale drilling in US (more and more rigs are idled). Crude output in US fell to the lowest level since November 2014. Further signs of decline in US oil production and forthcoming Oil freeze talks may trigger the wave of calls on Crude but more corrections are expected before WTI firmly occupy $40 level.
The meeting on output cap will be held on 20 March. Positive expectations serve as a decent boost factor to Oil prices. Russia and majority of OPEC and Non-OPEC countries express their willingness to team up in efforts to return market into balance, but participation of Iran is essential to set the plan into motion.USD/RUB followed the course of Oil retreating from 80 peaks to 71.40 level. Further strengthening is tightly bound to the prices on Oil.
Japanese indices suffer from moderate selloff today as automotive manufacturing, gas and water companies, banks post negative performance. Toshiba Corp are the worst performer with 7.01% decline today.
USD Index showling the value of USD against the basket of six overseas peers slid 0.03% today to 97.09 points.
USD/JPY declined as Yen strengthens on Oil decline and worrisome equity markets, -0.37% today, GBP/USD drops 0.22% ahead of BoE Carney speech on UK EU membership, AUD/USD extend drop as Australian currency gains bullish momentum on Global commodity upturn. EUR/USD remains near yesterday session close at 1.1020.