Morning Market Overview
Oil prices started the trading week in positive territory Monday even with the US mostly closed for the President’s Day Holiday. Most trading was driven by the Asian and European markets as many US traders were likely on the sidelines today. Not much new on the fundamental front with OPEC and its non-OPEC partners still complying to the December crude oil cuts at a very high level with Saudi Arabia indicating late last week that they are likely to decrease their cuts by another 500,000 bpd in March.
Further supporting oil prices was a broad rally in most global equity markets after the strong US rally on Friday along with a bit of weakness in the US dollar versus most currency pairs. Both supportive for the oil market as well as the broader commodity complex. On the financial front global equity markets were mostly higher around the world with the US market closed for the holiday although US equity futures were slightly higher in electronic trading today.
The EMI Index was higher by 0.46 percent for the day with the year to date gain at 9.9 percent. All ten bourses in the Index are in positive territory for 2019 with Japan holding the worst performing spot in the Index with the US and Brazil tied for the top spot with an 11 percent gain for the year. The higher value direction in global equity markets today was a positive price driver for the oil complex.
On the currency front the US dollar Index was lower for the day with the Yen/USD and the Euro/USD higher. Overall the currency markets were a positive price driver for the oil complex.