FxWirePro: Norwegian Krone hovers towards 7-month peak as crude oil gains on bigger-than-expected decline in U.S. crude stocks
The Norwegian Krone surged, hovering towards a 7-month peak scaled in the prior session as oil prices rose following a drop in U.S. crude inventories. Crude oil price surged as a bigger-than-expected drawdown in U.S. cru…
The Norwegian Krone surged, hovering towards a 7-month peak scaled in the prior session as oil prices rose following a drop in U.S. crude inventories.
Crude oil price surged as a bigger-than-expected drawdown in U.S. crude stocks overshadowed concerns that U.S. fuel demand may not recover quickly amid stalled talks on a post-coronavirus economic stimulus package.
Industry data from the American Petroleum Institute showed U.S. crude inventories fell by 4.3 million barrels to about 512 million barrels, more than analysts’ expectations for a 2.7 million-barrel drawdown.
International benchmark Brent crude was trading 0.1 percent up at $45.04 per barrel by 0842 GMT, having hit a high of $45.76 last week, its highest since August 5. U.S. West Texas Intermediate was trading 0.05 percent higher at $42.53 a barrel, after rising as high as $42.97 on Tuesday, its highest since August 5.
Investors also keenly await news from Wednesday’s meeting of a ministerial panel of the Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia, which is set to review adherence to a previously agreed deal on oil output cuts.
USD/NOK trades 0.2 percent lower at 8.8279, having touched a low of 8.7927 in the previous session, its lowest since early Janunary.
Immediate resistance is located at 8.8752 (5-DMA), close above could take it till 8.9028 (7-EMA).
On the downside, support is around 8.8070, break below could take it till 8.7905.
