Is another oil crisis ahead of us?

By 26/08/2020News
Morning Stock News

Gold  1929,29
(+0,08%)

EURUSD   1,182
(-0,11%)

DJIA  28156
(-0,11%)

OIL.WTI  43,405
(+0,10%)

DAX   13095,10
(+0,01%)

Hurricane Laura is approaching the United States, which has already been granted tropical storm status. Already on Wednesday night it will disrupt the work of the largest refineries in the states of Texas and Louisiana. Another oil crisis is ahead of us, or maybe everything is not so terrible as it seems?


OIL.WTI

OIL.WTI

Today, oil has crossed the border above the daily SMA200, which is symbolic before the hurricane in the Gulf of Mexico. Fears of possible supply disruptions are driving the price higher at $43.5 per barrel.
This area in the Gulf has about 15% of all production capacity in the U.S., and most of the refineries are located on the coast.
Of course, investors will now follow the situation closely, but fear has big eyes, so it is very likely that oil will rise in price in the coming days..


Indices

On Tuesday stock markets behave in a mixed way. Europe closed near session lows, DAX added 0.1%. Trade optimism is growing, Germany’s economic performance was better than expected, and the business climate index was also better than expected.
In the U.S. investors were worried about the hurricane, on Tuesday the S&P500 index remained at the opening levels.
We can see that the U.S. market is growing without kickbacks. The financial sector somehow needs to process the volumes that have come in the last few weeks. So we will probably see a flat movement in the index for a while.


Pound Sterling

The GBP/USD pair keeps near the session highs and is very well performing compared to other European currencies. Lack of progress on Brexit is pushing the pair, but expectations that the countries will find a compromise in the negotiations are strongly supporting the pound. Against the backdrop of a weak U.S. dollar, this has a certain effect. The first resistance of the GBP/USD pair is at 1.3150.


What’s waiting for us today?

12.00 Total number of unemployed in France.
14.30 Base orders for durable goods in the USA for July.
16.30 US crude oil reserves


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