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Post by capitalstars Equity tips on Oct 27, 2015 16:40:48 GMT 8
CRUDE OIL: At the end of the week, two central bank actions should have seen oil rising but failed. Oil traders have been considering the prospects of new stimulus measures from the European Central Bank. The People’s Bank of China dumped more stimulus into the markets by cutting its two key interest rates. China’s central bank announced that it is cutting interest rates by 25 basis points along with a 50 basis point reduction in reserve requirements at banks. These actions should stimulate both demand and supply of bank credit. These two events alone should have sent oil climbing but had no effect on oil prices. Oil markets have been over-supplied since the beginning of 2014. Faith Birol, executive director of the International Energy Agency, is expecting still further declines in oil industry investment in the coming year. Speaking at Singapore International Energy Week on Monday, he said it would be the first time in two decades that oil investment declines for two consecutive years. Industry group Baker Hughes reported late on Friday that the number of rigs drilling for oil in the U.S. dropped by one last week to 594, making it the eighth straight weekly drop. Fed is not expected to raise rates at this week’s meeting, investors will be watching for clues on its take on the global economy and whether a hike could come in December. Visit our more tips below: Stock Trading tips Intraday Stock cash Tips Stock Market Tips Share market tips
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