EUR/USD up 0.32%. WTI Crude below $30.

EUR/USD made a gradual increase throughout the day. The pair is recovering for a second day after the Friday’s sell-off. It finished the session at 1.0925, 0.32% higher than the previous close.

The performance of major US indices is mentioned below:

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  • DJIA lost 1.80% closing at 16,153.54.
  • Nasdaq Composite finished the session at 4,516.95, down 2.24%.
  • S&P 500 declined by 1.87% closing at 1,903.03.

The stock sell-off was mainly caused by plummeting oil prices. The WTI Crude closed at 29.88 USD/bbl, losing 5.50%. The Brent Crude was trading at 32.51 USD/bbl as of 17:52 ET, which is 5.05% lower than the previous closing price.

Lower oil prices had an impact on giant oil companies like BP and Exxon Mobile. BP announced a $3.3 billion loss in the fourth-quarter. BP’s loss is $6.48 billion in 2015 compared with $3.78 profit in 2014. Exxon mobile quarterly profits dropped by 58%, however they beat the analysts’ expectations. The company reported a $2.78 billion profit, which was the lowest quarterly figure since 2002.

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Oil prices plunged as the investors seem to not take a cooperative production cut seriously. Russian officials several times confirmed their willingness to cooperate with OPEC. And Saudi Arabia, the OPEC’s largest producer, reported that it would only discuss cutting back its output if non-OPEC countries also agree to reduce their production.

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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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