Today, the price of crude
oil rose sharply after a combination of factors over the weekend. On Friday,
Baker Hughes released the US rig count data. The number showed that the number
of rig counts declined to 802 from the previous 805. The number of rigs does
not necessarily affect the amount of crude oil pumped. In fact, the rigs have
dropped from more than 1600 in 2014. The gains made today are likely because of
the signal that OPEC will maintain the current supplies. In a statement by
Saudi and United Arab Emirates (UAE) oil ministers. Due to their supply cuts,
the price of crude oil has jumped by more than 30% this year. The gains are
also because of Iran. In a tweet, the US president said that a US war with Iran
would be the ‘end’ of the country. This is after the tensions with Iran have
continually increased in the past few weeks.
Investors focused on
Australia, as the country went to an election. Over the weekend, Australian
Prime Minister Scott Morrison came from behind to win the elections. The election
was focused on the economy and climate change. Morrison’s party focused on
boosting the economy while that of the Labor party focused on climate change.
Most Australians voted for the economy in the commodity-rich country. His
victory was driven by parts of the country that have seen some weakness as the
commodity boom comes to the end. The opposition party focused on climate
change, wealth redistribution, and more public spending. This election came at
a pivotal time for the economy. With a global trade rivalry, the country could
be affected because China is its biggest trading partner. The country has also
seen a weakness in the housing and mining sectors.
The challenges in Europe
continued over the weekend after a video showing the leader of the junior
partner in Austria ruling coalition offering contracts to a woman believed to
be a Russian oligarch. It was a blow to Europe’s far right movement as the
European Union elections neared. The country’s chancellor, Sebastian Kurz
dissolved the government. As Europe heads to elections, there is increased
focus on the right-wing parties. In the UK Nigel Farage’s Brexit Party is
leading in the polls. In France, the party of Marine Le Pen is under
investigation for misuse of public funds and for receiving a Russian loan. In
Italy, Matteo Salvini’s League party is facing possible bankruptcy. In Germany,
authorities are investigating the right-wing parties for financial misconduct.
Another big news came
from Google. The company announced that it would stop offering Huawei with
Android services. This was after the United States placed restrictions on what
services US companies could offer the Chinese giant. This is a major blow
because Huawei is the world’s second largest smartphone company after Samsung.
Last year, it shipped more than 200 million units. These units come with
Android operating system. Still, because Android is open-sourced, the company
will be able to access the system. However, it will not access the proprietary
apps and services from Google.
The post Weekend Review: Oil Rises as OPEC Points to More Cuts appeared first on Forex.Info.