{"id":59706,"date":"2023-04-04T10:56:07","date_gmt":"2023-04-04T07:56:07","guid":{"rendered":"https:\/\/ironfx-com-php8.wp-dev.int.theitops.net\/?p=59706"},"modified":"2025-11-28T13:46:06","modified_gmt":"2025-11-28T11:46:06","slug":"oil-prices-retain-their-gains","status":"publish","type":"post","link":"https:\/\/www.ironfx-id.com\/pt\/oil-prices-retain-their-gains\/","title":{"rendered":"Oil prices retain their gains"},"content":{"rendered":"

Oil prices maintained the gains made yesterday after the surprise oil production cut announced by the OPEC+ group and are threatening to go even higher, with analysts speculating that the oil price is to reach $95\u2013$100 per barrel by the end of the year. Such a development could support inflationary pressures around the world, forcing central banks to tighten their monetary policy even further which in turn may have an adverse effect on economic activity and even cause a recession. Oil prices may get additional support should the US weekly readings show that the US oil market remains tight, reinforcing oil price momentum. We also note that the market may slowly but steadily start turning its attention towards the demand side of the commodity and the prospect of slowing manufacturing activity may not bode well for the oil price. It should be noted that economic activity in the US has contracted once again, reaching the lowest level post-pandemic according to the ISM manufacturing PMI figure for March, attributing to the weakening of the USD which was marked across the board yesterday. US stock markets were on the rise yesterday, boosted by the rise of oil companies, yet we also note that Tesla\u2019s shares tumbled, as profitability-margin worries overshadowed the record-high car deliveries of the automaker, while WSJ reported that McDonald\u2019s is preparing layoffs as part of a restructuring plan, which under certain circumstances could provide a boost for its share price. We also note that US stock markets may be substantially affected should Fed policymakers actually sound hawkish enough. In the land down under, as was widely expected, RBA remained on hold at 3.6% in an effort to assess the state of the economy and hinted that the cash rate may be reaching its peak in Governor Lowe\u2019s accompanying statement. Also, we highlight the release of RBNZ\u2019s interest rate decision and the bank is expected to proceed with a 25-basis-points rate hike. Should the bank actually deliver the expected rate hike and the decision be accompanied by a hawkish statement, we may see the Kiwi getting some support, especially if oil price<\/strong> volatility influences broader market sentiment.<\/p>\n\n\n\n

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