Oil Prices Keep Rising As Fed’s Powell Signals Rate Cuts & OPEC Keeps Cuts

Oil prices have continued their move higher during APAC trading today. Brent is 0.4% higher at $89.69/bbl, close to the intraday high and is approaching the psychologically-important $90 level again. WTI is up 0.4% to $85.77. Oil has strengthened following Fed Chair Powell saying rates will be cut this year and OPEC’s decision to maintain production cuts until at least the end of June. Prices are up around 3% this week. The USD index is slightly lower.

• At its online ministerial review meeting, OPEC members didn’t suggest any changes to current quotas to the end of June. But compliance is patchy with Iraq, UAE and Gabon producing above their quotas, although Iraq moved closer cutting output 30kbd in March, according to a Bloomberg survey. Also Russian crude exports are rising.
• US central command reported it had destroyed Houthi missiles and drones off the coast of Yemen which were directed at USS Gravely.
• Later the Fed’s Harker, Barkin, Goolsbee, Mester and Kashkari appear. In data terms February US trade and jobless claims, and European March services PMIs print. The ECB March accounts are also published.