There are many good reasons that make investors be cautious about risk at the beginning of the week, so stock markets would decline at the beginning of the week, however despite risk-off mode US dollar is slightly weaker on Monday. The dollar index retreated from recent highs and dropped to 96.60. The price movement on Monday reflected these considerations, although none of the movements was so intense. US markets opened negatively, with the start of trading, American exchanges declined more than one percent
As for commodities, the price of Brent crude today is trading near the lows set on Friday. Last week, despite OPEC decision to extend the Vienna agreement concluded in autumn 2016, oil remained under moderate pressure and Brent ended the week with -2.2%, and on WTI - 2.7%. The main risks for the oil market are still associated with the formation of excess supply in the market on the background of a high level of world production and a slowdown in the growth of the global economy. Accordingly, the focus of investors this week will be upon events that are directly or indirectly related to the level of production or prospects for the development of the global economy.
On Friday, Baker Hughes published fresh data on drilling activity in the United States, which showed a decrease in the number of drilling units by 4 units to a level of 873 units, but more important for traders will be the dynamics of reserves and average daily production, which will be published later.
The most important news this week are expected on Wednesday, because on this day the data from the US Department of Energy will be published, and the Fed will announce the results of the two-day meeting, in addition an annual economic conference will be held in China.This will no doubt attract the attention of markets. All these events can have a very strong impact on the oil market.
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