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What’s happening: Crude oil prices closed lower on Friday, recording weekly and monthly losses.
What happened: Some easing in geopolitical concerns soothed supply concerns, weighing on oil prices.
The OPEC+ (the Organization of the Petroleum Exporting Countries and its allies) announced a delay to its planned meeting, which was earlier scheduled for Sunday.
Why it matters: The OPEC+ postponed its meeting to December 5, as several ministers are currently attending the 45th Gulf Summit. Markets widely expect the group to delay its plans to unwind output cuts.
The OPEC+ had earlier planned to begin unwinding its output cut of approximately 2.2 million barrels per day (bpd) in October but had announced a delay of the announcement until December 1.
Geopolitical concerns have not weighed on crude prices, with ample supplies till next year. The IEA (International Energy Agency) said there is excess supply of over 1 million bpd, or more than 1% of global output.
WTI crude for January delivery declined 72 cents, or 1.1%, to settle at $68 per barrel on the NYMEX (New York Mercantile Exchange). WTI shed about 4.6% last week and a monthly decline of 1.8%.
January Brent crude, the global benchmark, declined 34 cents, or 0.5%, to close at $72.94 per barrel on ICE Futures Europe, recording a weekly decline of 3% and 0.3% for November.
In other energy trading, December gasoline declined 2.97 cents, or 1.5%, to settle at $1.9437 per gallon, while December heating oil fell 0.5% to close at $2.193 a gallon. January natural gas futures bucked the trend to close at $3.363 per million British thermal units, up 5% on Friday.
What to watch: Investors await the OPEC+ meeting, which is now scheduled for December 5, with the group widely expected to announce a further extension to output cuts. Geopolitical concerns will also remain in focus.
Context: Equity markets in the Eurozone settled higher on Friday as investors monitored the latest inflation data.
Details: Eurozone inflation accelerated to 2.3% in November, from 2% in the previous month.
The latest reading was above the European Central Bank’s target of 2%. This sparked speculations of the ECB becoming more cautious about cutting interest rates. The central bank is scheduled to announce its rate decision next week.
France’s harmonised inflation rate rose to 1.7% in November, from 1.6% in the previous month. The figure came in-line with market expectations.
The STOXX Europe 600 index rose 0.58% to close at 510.25 on Friday, with almost all sectors recording gains.
The pan-European benchmark ended November with gains of 0.96%, after recording its worst monthly performance in about a year in October.
Tech stocks were among the top performers, adding around 1.8% on Friday. Mining stocks also recorded gains, up around 1.5%.
London’s FTSE 100 added 0.07% to close at 8,287.30 on Friday. Germany’s DAX 40 gained 1.03% to 19,626.45, while France’s CAC 40 rose by 0.78% to settle at 7,235.11.
What to watch: Investors await the release of economic data on HCOB manufacturing PMI (1300 UAE Time) and unemployment rate (1400 UAE Time) from the Eurozone today. The HCOB manufacturing PMI is expected to decline to 45.2 in November, from 46 in the previous month. Analysts expect the unemployment rate in the Eurozone to remain at 6.3% in September.
Other Markets: Asian indices traded mixed this morning, with Hong Kong’s Hang Seng Index and China’s Shanghai Composite Index up by 0.65% and 0.70%, respectively, and Japan’s Nikkei 225 down by 0.27%.
Ukrainian President Volodymyr Zelenskyy said he plans to work directly with US President-elect Donald Trump, with Russia escalating its attack. The news sent the RUB/USD pair higher in forex trading this morning.
China’s Caixin General Manufacturing PMI rose to 51.5 in November, from 50.3 in the previous month. However, the CNY/USD forex pair remained under pressure.
The Philippines said its manufacturing PMI climbed to 53.8 in November, from 52.9 in the previous month. The country’s manufacturing activity expanding for the fifteenth straight month sent the PHP/USD pair higher in forex trading this morning.
Australia’s corporate profits declined by 4.6% in the third quarter, missing market expectations of a 0.8% gain, which exerted pressure on the AUD/USD forex pair.
Vietnam’s S&P Global manufacturing PMI declined to 50.8 in November, from 51.2 in the previous month, sending the VND/USD pair lower in forex trading this morning.
Spain’s HCOB manufacturing PMI (1215 UAE Time), Italy’s HCOB manufacturing PMI (1245 UAE Time), unemployment rate (1245 UAE Time) and GDP growth rate (1400 UAE Time), France’s HCOB manufacturing PMI (1250 UAE Time), Germany’s HCOB manufacturing PMI (1255 UAE Time), South Africa’s ABSA manufacturing PMI (1300 UAE Time) and total new vehicle sales (1600 UAE Time), UK S&P Global manufacturing PMI (1330 UAE Time), Mexico’s foreign exchange reserves (1400 UAE Time), business confidence (1600 UAE Time) and S&P Global manufacturing PMI (1700 UAE Time), Brazil’s S&P Global manufacturing PMI (1700 UAE Time), Singapore’s SIPMM manufacturing PMI (1700 UAE Time), Canada’s S&P Global manufacturing PMI (1830 UAE Time), as well as US S&P Global manufacturing PMI (1845 UAE Time), ISM manufacturing PMI (1700 UAE Time), and construction spending (1700 UAE Time).
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