Market speculation that OPEC and Russia will agree to extend the 9.7 million bpd production cut plan from the end of June to September 1. Since last Wednesday, WTI oil prices have risen 22%.
However, there are reports that Russia and Saudi Arabia have differences. Saudi Arabia hopes to maintain the existing production reduction measures until the end of this year, while Russia supports the relaxation of cuts from July 1st, making WTI crude oil trade from 38.15 overnight in Toronto early trading The US dollar/barrel high fell to US$35.91/barrel and is now rebounding to US$37.11/barrel. However, the representative of OPEC said that the two sides are discussing a compromise plan, that is, to maintain the current output reduction by September 1.
Eurostat announced on the 3rd local time that due to the impact of the new coronary pneumonia epidemic, the unemployment rate in the euro zone rose to 7.3% in April, an increase of 0.2 percentage points from March. bomb. The euro/dollar is still supported by the European Union’s new coronary pneumonia bailout fund proposal and the European Central Bank’s expectation of increased monetary stimulus at the Thursday meeting.
Investors worry that the EU-UK trade talks have reached an impasse, but the GBP/USD is still higher with the euro. The final value of the PMI of the UK service industry in May was better than expected, but consumer demand is still very low, and most areas of the service industry are still in the planning stage of restarting business.
On Wednesday (June 3) at 7:00 am GST, the Bank of Canada announced its interest rate decision, announcing that the interest rate will remain unchanged at 0.25%. The Canadian central bank also emphasized that the current borrowing cost is the effective lower limit and negative interest rates have not been taken into account. After the announcement of bond purchases in March, some market operations are being scaled back. March was the time when the financial crisis related to the new coronavirus was the worst. The impact of the epidemic may have reached its peak, and the contraction in the second quarter is expected to reach 10-20%, which is better than previous pessimistic expectations.