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1/22/2016, 11:31 AM (Source: TeleTrader)
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Oil soars as tension mounts within OPEC

Futures of crude rose sharply on Friday, propping up the currencies of Canada and Australia, economies which lean heavily on commodities exports. Markets moved as Nigeria yesterday called for an emergency meeting of the Organization of the Petroleum Exporting Countries to agree on a cut in production. The rift in the dominating cartel resulted in signals some members may turn for cooperation to other states that produce crude. Echos from yesterday's speech by Mario Draghi, president of the European Central Bank, with hints about policy easing, underpinned stock markets around the globe.

Government-controlled Indian Oil Corporation agreed with Nigerian suppliers to boost term contracts for crude from 1.7 million tonnes a year to three million, the Asian country's officials said. World's major producers of the commodity have been making efforts to maintain high output in order to close budget gaps and keep the market share, even though stocks have been piling up to record levels around the world. North America did see its number of active rigs decimate in the past year, though supply in the segment of shale has been somewhat persistent.

The United States Energy Information Agency revealed inventories jumped by four million barrels last week, a level which was accepted as moderate. WTI oil for delivery in March jumped 3.34% to $30.86 a barrel, and Brent added 3.7% to change hands at $30.82 a barrel (both 11:15 a.m. CET). The two benchmark contracts earlier touched $31.03 and $31.1, respectively.

The Canadian dollar rose 1.08% versus the euro and 0.68% against the dollar. Compared to the yen, the loonie jumped 1.27%. The Australian dollar was 0.77% ahead versus the Japanese currency (all 11:30 a.m. CET).

Baha Breaking News (BBN) / IT