Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
EUR/USD ends week flat, unable to break 1.1000
EUR/USD is about to end a five-week positive streak with a slight loss. The Euro failed to rise above 1.1000, but it held above 1.0900, despite some bouts of dollar strength, including on Friday after the upbeat US S&P Global PMI figures.
Gold steadies around $1,980; down $20 for the week
Gold price bottomed at $1,971 on Friday, after the release of better-than-forecast US S&P Global PMI; and then rebounded to $1,980. The yellow metal dropped $20 from the level it had a week ago, suffering the worst weekly fall since February.
Global Growth Prospects Continue to Improve
Given the sheer size and influence of China’s economy, upward revisions to China’s growth outlook can have positive implications around the world and boost our global GDP forecast. With China’s economic rebound still intact, another global GDP growth upward revision could be forthcoming.
Today, the US Baker Hughes oil rig count increased to 591 from the previous count of 588. This uptick comes after weeks of decline, mostly driven by low oil prices.
The US rig count- a weekly tally of the number of active rigs drilling for oil and natural gas in the US- has been on a general decline since 2015. At it’s peak, on October 10th, 2014, the figure was 1,609, but it had since dropped by over sixty percent to 609 by the end of 2019.
This current increase, for the first time since mid-June, coincides with a rebound in global oil prices, fuel demand recovery, and some OPEC+ output reductions. In addition, these figures reflect the increased activity in the onshore shale oil and gas fields, especially in the Permian Basin, which is located in western Texas and New Mexico. An expected production increase of around 0.3 million barrels a day driven by new projects, such as ExxonMobil’s new facility in the area, is seen as a major factor driving the increase in rigs.
However, industry analysts degree of optimism is muted, with many noting that the rebound might be temporary. Across the US, natural gas inventories have climbed to a five month high, and the rapid bankruptcy of oil and gas companies has left an uncertain landscape for the industry. As the sector faces the potential for sustained low oil prices, US producers may once again be forced to make cost cutting decisions, putting future rig counts in doubt.
In a larger context, there still is great uncertainty spurred by the coronavirus pandemic, which is impacting global oil demand. As the US waits for demand to pick up and stabilize, producers will remain cautious in their investments until more answers come to light.
Overall, the US has seen an increase in its Baker Hughes rig count, causing some optimism in the energy sector. Nevertheless, with global oil demand still uncertain, the long-term prognosis remains unclear.