Oil soars on OPEC output cut talks

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Asian stocks gaining on G20 breakthrough and Oil soars, signalling a skyrocket after upcoming OPEC event

  • Soaring oil might experience a breakthrough at any moment, as OPEC event is upcoming and high market volatility is expected during OPEC event, due on December 6th-7th
  • Asian stocks ended up broadly higher, with nearly 2% gain on the House of Cards
  • Investors are eyeing towards more gain on Asian stocks, as US-china had agreed on a trade truce and the Trump administration would not be hiking tariff, as mentioned by the White House in a Post G20 Summit, press statement.

Asian stocks have started the week in the green, as investors are cheering over the trade truce between US and China in a Saturday Night Dinner on G20 summit. As global leaders of world’s most influential countries had been meeting in the last couple of days in G20 Summit, there had been progress in the oil output cut alongside, the much-anticipated trade truce.Soaring oil might experience a breakthrough at any moment, as OPEC event is upcoming and high market volatility is expected during OPEC event, due on December 6th-7th

In the wake of a trade-truce between Washington and China, the US tariff hikes over the Chinese goods will be suspended for 90 days and in the meantime, investors are expecting that US and China would find something out to reach a trade deal, that China had already submitted. As the market has been eyeing production cuts from Saudi Arabia and Russia, US crude and Brent Crude soar. While this report is being the written, the US crude has been experiencing a safe haven over $52.50, after languishing an excruciating week in the 50s and below 50s.

As it is mentioned, the Asian stocks have gained over 2%, while the Nikkei 225 posted 1.1% gain and Shanghai was nearly 3% up. Hang Seng rose by 2.2% and ASX added 1.8% as well. AUD has been gaining in the morning session as well, reigning above 0.7300 after a long time, China is a key export strength for Australia and this trade truce has heavily influenced the Australian Dollar, boosting an upsurge.

AUD/USD daily price chart (response during trade truce)

AUD/USD daily price chart.png

Bottom Line

In the wake of the recent trade deal and OPEC oil output cut, the prospect of Crude oil and Asian stocks, both appear to be on the verge of skyrocketing, ahead of the upcoming OPEC event due on December 6thand 7th. As for crude oil, a buying position appears to be opening, and Asian stocks are expected to gain further in this week, as a lacklustre American Dollar is expected, ahead of dovish FED’s non-firm payroll report due on Friday.

Read more on Asian stocks here

[Disclaimer: The content of this article is personal opinion and should not be considered as investment advice or suggestion towards any trading activity.]

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