FXStreet (Delhi) – Lee Hardman, Currency Analyst at MUFG, notes that the price of crude oil is back under downward pressure in the near-term following last week’s OPEC meeting at which no action was taken to combat the oil supply glut. Key Quotes “A further decline the price of crude oil as WTI has fallen below USD40.0/barrel is likely helping to dampen upward pressure on US yields and the US dollar inn the near-term. It follows comments last week from Fed Chair Yellen stating that “given the shortfall in inflation from our 2% objective, the FOMC will, of course, carefully monitor “actual” progress towards our inflation goal as we make the decisions over time on the appropriate path for the Fed funds rate”.” “OPEC members abandoned their official production target of 30 million barrels/day which has been breached since May 2014. The Iraqi Oil Minister stated that “most of the market doesn’t have any ceiling…why should OPEC have a ceiling?” The outcome supports expectations that OPEC will continue to focus on market share rather than supporting prices. The outcome is most negative for oil related currencies, and also increases pressure most acutely on central banks that are already fighting with uncomfortably low inflation such as the ECB.” For more information, read our latest forex news.