EUR/USD at 1.0852. Oil crashed below 30$.

US dollar steadily decreased against Euro throughout the day. The pair EUR/USD opened at 1.0793 and gradually moved up reaching the highest value of 1.0859 and closing the day at 1.0852, which is 0.49% higher than the previous close.

US stock markets opened lower today following the European markets. All major indices were trading slightly below yesterday closing price throughout the day until they sharply decreased at the end of the session. Below are presented the performance of 3 main US indices:

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  • Dow Jones Industrial Average lost 208.29 points closing at 15,885.22 (-1.29%).
  • Nasdaq Composite dropped 1.58%, closing at 4,518.49.
  • S&P 500 finished at 1,877.08, losing 1.56%.

Oil prices plummeted today below 30$. It seems the prices haven’t hit their bottom yet, as some investors thought after oil hit 26.19$ on Wednesday. Today WTI Crude closed at 29.80 USD/bbl, losing 7.42%. As of 17:26 ET, the Brent Crude was trading at 30.13, which is 6.37% lower than the previous close.

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The main event that could trigger such decline in prices was today’s announcement by the Iraqi government. According to Iraq’s oil minister the oil production in December hit a record high of 4.13m barrels a day. This led to low prices as it is making a situation concerning global oversupply even worse.

Among other important events that took place today, we can mention the announcement by Abdullah al-Badri, the head of Opec. According to him, the Opec and non-Opec producers should work together to solve the problem with oversupply and eventually bringing prices back to higher levels. He also blamed non-Opec countries for the huge global glut. However, it’s important to mention, that the strongest supporter of not cutting oil production is Saudi Arabia, the major Opec member.

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I’m a finance specialist with 4+ years of working experience, out of which 2 years as a SME relationship manager at Byblos Bank and 2 years as a Finance Director in a Food & Beverage sector. My academic background include BA in economics, MA in finance, CFA Level 1 and F1, F2, F3 level of ACCA. I’m also experienced in Forex/CFD trading and Forex/ Equity markets analysis.

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