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Oil was a volatile day with a weak US dollar

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 4, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet - While the US could up activity to increase supply in oil with the capability to produce so much more, as in inadvertent swing-producer should prices rise again, nevertheless, there could be a turn of events over the next page of this chapter in oil as producers, OPEC and non-OPEC nations, could club together and agree to cut production, so the sentiment goes.

    However, we have already had Russian oil minister turned down by OPEC representatives that said that it was unlikely the group would meet with Russia anytime soon.

    Today, Oil fell 2 percent in volatile trading while the US dollar was sold off, but the strength in oil price was offset by the skepticism that cash-strapped OPEC member Venezuela's effort to lobby crude producers for joint output cuts would succeed.

    The price settled back below $32 after a high of $33.62 and a low of $31.50, but a recovery came when the White house reported that it might include a $10 per barrel oil fee in a 2017 budget proposal. Oil companies would pay the fee, which would be gradually introduced over five years to pay for transportation systems.

    "By placing a fee on oil, the president's plan creates a clear incentive for private sector innovation to reduce our reliance on oil and at the same time invests in clean energy technologies that will power our future," the White House said in a statement.
    For more information, read our latest forex news.
     

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