Market Drivers – European Session 21-2-2022

An OPEC + source told Reuters that the commitment of the producer group to oil production cuts rose to 129 percent in January, noting that some members are still finding it difficult to increase their production.

This compares with 122 percent in December and 117 percent in November.

The source said that the commitment of members of the Organization of Petroleum Exporting Countries (OPEC) reached 133 percent in January, while non-OPEC producers achieved a commitment of 123 percent.

Oil prices rose slightly on Monday after fresh diplomatic efforts to resolve the Ukraine crisis brought relief to markets oversupply concerns that kept oil prices close to $100 a barrel.

Brent crude futures rose 25 cents, or 0.3 percent, to $93.79 a barrel.

US West Texas Intermediate crude futures rose 35 cents, or 0.4 percent, to $91.42 a barrel.

The Eurozone Manufacturing purchasing managers index (PMI) arrived at 58.4 in February vs. 58.7 expectations and 58.7 last. The index hit two-month lows. The bloc’s Services PMI jumped sharply 55.8 in February vs. 52.0 expected and 51.1 previous. The indicator hit three-month highs.

The German economy is expected to contract again in the first quarter of the year, Germany’s central bank, Bundesbank, noted in its monthly report on Monday, as reported by Reuters.

“Unlike in previous waves of the pandemic it is not just activity in the services sector that is likely affected by containment measures and behavioural changes,” Bundesbank explained in its publication.