Account
New to ADSS? Open an
account now to get started.
Already have an account?
Add funds to your ADSS account
Account
New to ADSS? Open an
account now to get started.
Add funds to your ADSS account
What’s happening: Crude oil recorded gains on Monday, with prices surging to over three-week highs.
What happened: US President Donald Trump said his country would impose tariffs on any nation purchasing oil and gas from Venezuela.
Oil giant Chevron was given some extra time to wind down its operations in Venezuela.
Why it matters: Markets have been reeling under the pressure of the US President’s tariff-related concerns. Donald Trump has imposed tariffs on several countries already, while threatening others of a similar fate.
In his latest move, Trump warned of levying a 25% tariff on any country buying oil or gas from Venezuela.
China is one of the major buyers of crude from Venezuela and would be significantly impacted by this announcement. India also became a top oil buyer from Venezuela in December 2023 and January 2024. In 2024, India imported 1.5% of its overall crude oil purchases from Venezuela.
The Trump administration indicated that it is now looking to take a “measured” approach. The US President said on Friday that there would be some flexibility on tariffs and that he is looking forward to speaking with Chinese President Xi Jinping.
US has now ordered Chevron to wind down its oil operations and exports from Venezuela by May 27. The oil producer was earlier asked to wind down operations by April 3.
Meanwhile, the OPEC+ (Organization of the Petroleum Exporting Countries and its allies) is projected to announce its second straight output increase in May. Markets expect the cartel to increase production by 135,000 bpd (barrels per day).
Brent crude oil gained 1.2% to reach $73 per barrel on Monday, while WTI crude oil climbed 83 cents, or 1.2%, to settle at $69.11 per barrel. Both oil benchmarks had risen on Friday, notching the second weekly gain in a row.
What to watch: Investors will continue monitoring how the Trump administration will enforce the tariff announced.
Data on crude oil stockpiles from the EIA (Energy Information Administration), due to be released on Wednesday, will also remain in focus. Crude oil inventories in the US rose by 1.745 million barrels in the week ended March 14, compared to market estimates of a 1.1 million gain, while gasoline stockpiles in the US fell by 0.527 million barrels during the week.
Context: Equity markets in Europe closed slightly lower on Monday, as investors assessed the latest economic data and Trump’s tariffs news.
Details: Data released on Monday showed the HCOB Eurozone composite PMI rising to 50.4 in March, from 50.2 in the previous month. Although the reading fell short of market estimates of 50.8, it signalled expansion in business activity for the third month in a row.
The HCOB Eurozone manufacturing PMI rose to 48.7 in March, recording the strongest reading in 26 months. Services PMI declined to 50.4 in March, from 50.6 in the previous month.
Global investors are regularly monitoring tariff announcements from US President Donald Trump.
The STOXX Europe 600 Index fell 0.13% to close at 548.93 on Monday, with the travel and leisure sector gaining around 0.55% during the session following the reopening of London’s Heathrow Airport on Saturday, which was disrupted by a power outage due to a fire at one of the three electrical substations.
London’s FTSE 100 slipped 0.1% to settle at 8,638.01, while Germany’s DAX 40 and France’s CAC 40 lost 0.17% and 0.26%, respectively.
What to watch: Investors await the release of economic data on Germany’s Ifo business climate (1300 UAE Time), Ifo current conditions (1300 UAE Time) and Ifo expectations (1300 UAE Time) today. Analysts expect the Ifo business climate indicator for Germany to increase to 86.8 in March from 85.2 in February, while the Ifo current conditions index is projected to improve to 85.5 points in March, from 85 points in the previous month.
The Ifo expectations index for Germany, which rose to 85.4 points in February, is expected to improve further to 87.9 in March.
Other Markets: US trading indices closed higher on Monday, with the Dow Jones index, S&P 500 and Nasdaq 100 up by 1.42%, 1.76% and 2.16%, respectively.
US and Russian officials concluded daylong talks in Saudi Arabia on Monday, focused on a partial ceasefire in Ukraine. The news sent the RUB/USD pair slightly higher in forex trading this morning.
South Korea’s Composite Consumer Sentiment Index fell to 93.4 in March, from 95.2 in the previous month, exerting pressure on the KRW/USD forex pair.
Canada’s manufacturing sales contracted by 0.2% in February, compared to 1.7% growth in January, which sent the CAD/USD pair lower in forex trading this morning.
Mexico’s economic activity declined by 0.1% year-over-year in January, shrinking for the second straight month, which exerted pressure on the MXN/USD forex pair.
US S&P Global services PMI climbed to 54.3 in March, from 51 in the previous month. The latest reading coming in higher than market expectations of 50.8 sent the Nasdaq 100 higher by more than 2% on Monday.
South Africa’s FNB/BER consumer confidence index (1200 UAE Time), Spain’s PPI (1200 UAE Time), Brazil’s FGV consumer confidence (1500 UAE Time), BCB Copom meeting minutes (1500 UAE Time), UK’s CBI distributive trades (1500 UAE Time), Mexico’s retail sales (1600 UAE Time), as well as US Redbook index (1655 UAE Time), S&P/Case-Shiller home price index (1700 UAE Time), FHFA house price index (1700 UAE Time), CB consumer confidence (1800 UAE Time), new home sales (1800 UAE Time), Richmond Fed manufacturing index (1800 UAE Time) and money supply (2100 UAE Time).
ADSS
8th floor, CI Tower
Corniche Road
PO Box 93894
Abu Dhabi
United Arab Emirates
Trading Services
ts@adss.com
+971 2 657 2414
Investing in CFDs involves a high degree of risk that you will lose your money due to the use of leverage, particularly in fast moving markets, where a relatively small movement in the price can lead to a proportionately larger movement in the value of your investment. This can result in loses that exceed the funds in your account. You should consider whether you understand how CFDs work and you should seek independent advice if necessary.
ADS Securities LLC – S.P.C (“ADSS”) is authorised and regulated by the Securities and Commodities Authority (“SCA”) in the United Arab Emirates under First Category: Dealing in Securities and Fifth category: Arrangement and advice (Introduction). ADSS is a Limited Liability Company – Sole Proprietorship Company incorporated under United Arab Emirates law. The company is registered with the Department of Economic Development of Abu Dhabi (No. 1190047) and has its principal place of business at 8th Floor, CI Tower, Corniche Road, P.O. Box 93894, Abu Dhabi, United Arab Emirates.
The information presented is not directed at residents of any particular country outside the United Arab Emirates and is not intended for distribution to, or use by, any person in any country where the distribution or use is contrary to local law or regulation.
ADSS is an execution only service provider and does not provide advice. ADSS may publish general market commentary from time to time. Where it does, the material published does not constitute advice, or a solicitation, or a recommendation to a transaction in any financial instrument. ADSS accepts no responsibility for any use of the content presented and any consequences of that use. No representation or warranty is given as to the completeness of this information. Anyone acting on the information provided does so at their own risk.
