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Muhammad Hashad, Director of Research and Development – Noor Capital. Oil prices are experiencing stability after the OPEC decision.
Muhammad Hashad, Director of Research and Development at Noor Capital gives an overview of the markets in an interview with Dubai TV.
Oil is currently stable and was able to withstand after the OPEC + decision to limit the agreement to reduce production levels starting in August. A barrel of oil has reached above $ 40 a barrel and there are many factors that support oil prices, such as the continued decline in US oil stocks and drilling rigs. The number of American drilling rigs decreased from 258 to 252 and the market saw this as a decline in inventory. The expected price range for the current week is 40-45 dollars per barrel.
Stock markets are mixed, although it made some gains last week, but it was limited and attributed to the lack of Market movers and key data, Earnings reports have had some influence with the strong performance of the financial sector in Q2. Markets are looking for positive news regarding the arrival of the Covid-19 vaccine for further momentum, noting that liquidity has recently shied away from safe havens and investors’ appetite for risky assets.
The focus of attention of all markets now is the success of reaching a final Covid-19 vaccine, which will have a significant impact on the stock markets and a negative impact on gold.
The euro started the week on a good hike with the buying momentum supported by reaching an agreement of EU recovery fund to combat the economic effects of COVID-19, with the decline of the US dollar, which is being subjected to intense selling. Today the euro hit its highest level this week.
Stimulus plans pursued by global governments pushed investors away from safe haven with lack of movers but gold is still near the highest levels in several years as a safe haven and hedge against inflation tool
