FxWirePro: Norwegian Krone rallies to 1-month peak as oil surges ahead of OPEC+ meet
The Norwegian Krone rallied to a 1-month high as crude oil prices rose following a sharp decline in U.S. crude stocks Crude oil prices surged after a sharp drop in U.S. crude inventories, while the market await next step…
The Norwegian Krone rallied to a 1-month high as crude oil prices rose following a sharp decline in U.S. crude stocks
Crude oil prices surged after a sharp drop in U.S. crude inventories, while the market await next steps from a meeting later in the day on the future level of output cuts by OPEC and its allies.
The Organization of the Petroleum Exporting Countries and allies meets to decide oil output policy from August amid broad market expectations the cartel will ease supply curbs.
The OPEC+ have been cutting output since May by 9.7 million barrels per day, or 10 percent of global supply after the virus destroyed a third of global demand.
International benchmark Brent crude was trading 0.8 percent up at $43.38 per barrel by 1135 GMT, having hit a low of $41.29 on Friday, its lowest since July 1. U.S. West Texas Intermediate was trading 0.9 percent higher at $40.87 a barrel, after falling as low as $38.56 on Friday, its lowest since June 29.
Moreover, weakness in the greenback further supported the upside in the Norwegian currency.
USD/NOK trades 0.9 down at 9.2983, having touched a low of 9.2975 earlier, its lowest June 11.
Immediate resistance is located at 9.4185 (5-DMA), close above could take it till 9.4467 (10-DMA).
On the downside, support is around 9.2746, break below could take it till 9.2590.
