Technical & Fundamental Oil Reports Specialists

Follow us

December will not be peaceful

Published Friday, November 27th, 2015

With the US closed European stock markets made modest gains yesterday. Oil prices dipped with Brent closing down 71cts/bbl at $45.46/bbl and Gasoil losing $7.25/tonne. Expectations are growing that at the very least the ECB next week will cut its deposit rate deeper into negative territory to discourage banks from parking €160 billion overnight.

The Japanese CPI fell 0.1% in October and household spending by 2.4%. The profits of Chinese industrial companies fell by 4.6% year-on-year in October and there is pressure on Chinese brokerages from the regulator to cut client financing to buy stocks. The Asia Pacific excluding Japan index is down 0.9% and the Shanghai Composite -5.5%, its biggest daily fall since the August Black Monday 8.5% meltdown.

When the markets return to normal on Monday they face a potentially momentous four weeks of trading. Note the caveat potential because there are so many known unknowns to be resolved that it could lead to either a manic period or one of paralysis. The UN climate change conference begins on Monday in Paris (COP 21) and is due to last 2 weeks; the ECB meets on Thursday (Dec 3); OPEC on Friday Dec 4; the Bank of England on Dec 10; the Fed meets Dec 15/16 and there is a Spanish national election on Dec 20.

to read the rest of the report, please click here

Posted by David Hufton