FxWirePro: Norwegian Krone retreats from 3-week trough as oil rallies on improving demand, supply cuts
The Norwegian Krone rose, hovering away from a near to 3-week trough hit in the prior session as oil prices extended gains. Crude oil prices surged as the IEA increased its oil demand forecast for 2020, while OPEC+ agree…
The Norwegian Krone rose, hovering away from a near to 3-week trough hit in the prior session as oil prices extended gains.
Crude oil prices surged as the IEA increased its oil demand forecast for 2020, while OPEC+ agreed on record supply cuts.
International Energy Agency projected oil demand at 91.7 million barrels per day in 2020, 500,000 bpd higher than its estimate in May’s report, citing higher than expected consumption during the lockdowns.
Additionally, OPEC+ agreed this month to extend production cuts of 9.7 million barrels per day through July.
International benchmark Brent crude was trading 1.5 percent higher at $40.42 per barrel by 1117 GMT, having hit a low of $36.98 on Friday, its lowest since May 29. U.S. West Texas Intermediate was trading 1.9 percent up at $37.72 a barrel, after falling as low as $34.38 on Monday, its lowest since May 29.
USD/NOK trades 0.2 percent lower at 9.5160, having touched a high of 9.8119 the day before, its highest May 28.
On Monday, the pair rallied above the 9.8000 handle, but retraced to close 0.9 percent lower at 9.5368.
Immediate resistance is located at 9.6061, close above could take it till 9.6408.
On the downside, support is around 9.4221 (10-DMA),.break below could take it till 9.3790.
