FxWirePro: Norwegian Krone retreats from 1-month peak as oil falls after OPEC+ agree to ease record supply curbs
Thursday, July 16, 2020 11:57 AM UTC
- The Norwegian Krone retreated from a 1-month high as crude oil prices declined after OPEC and its allies agree to loosen oil supply curbs.
- Crude oil prices declined after the Organization of the Petroleum Exporting Countries and its allies agreed to scale back oil production cuts from August as the global economy slowly recovers from the coronavirus pandemic.
- Although hopes for a swift U.S. demand recovery after a bigger-than-expected drawdown from the U.S. crude stocks limited oil prices downside.
- Data from the Energy Information Administration showed U.S. crude inventories declined 7.5 million barrels last week.
- International benchmark Brent crude was trading 0.3 percent down at $43.46 per barrel by 1146 GMT, having hit a high of $43.82 on Wednesday, its highest since June 23. U.S. West Texas Intermediate was trading 0.6 percent lower at $40.73 a barrel, after rising as high as $41.24 on Wednesday, its highest since June 23.
- Moreover, rebound in the greenback further weighed on the Norwegian currency.
- USD/NOK trades 0.4 up at 9.3070, having touched a low of 9.2626 earlier, its lowest June 10.
- Immediate resistance is located at 9.3726, close above could take it till 9.4060.
- On the downside, support is around 9.2385, break below could take it till 9.2168.