Market Overview

Brent Tumbles As Dollar Climbs

Share:
Brent Tumbles As Dollar Climbs

Brent crude oil was poised to end the week on a low after falling to a four month low on Thursday following the first day of talks between the West and Iran.

The commodity traded at $103.57 at 6:32 GMT as an oversupplied market and a strong dollar continued to pressure prices.

Related: #PreMarket Primer: Friday, November 8: Investors Tweet A Sigh Of Relief

The European Central Bank surprised markets by cutting its main interest rate to a record low 0.25 percent, which helped buoy the dollar. Adding to the dollar's strength was a statement from the US Department of Commerce which said the nation's economic growth had increased more than expected in the third quarter. With a stronger dollar in play, crude became more expensive for holders of other currencies.

Brent was also under pressure as Western policymakers and Iranian officials headed into their second day of talks in order to strike a deal on Iran's disputed nuclear program. CNBC reported that Iran's foreign minister said the discussions were “tough”; however both sides have been positive about the progress that was made.

Iran's nuclear capabilities have long kept Brent prices supported as sanctions barred much of the nation's oil from markets. As the talks between the two sides progress and an agreement becomes more likely, oil prices will could drop even further.

Moving forward investors will also be focused on US nonfarm payroll data due out on Friday in hopes of fresh clues about the Federal Reserve's taper timeline. Although most aren't expecting the bank to cut down on its $85 billion per month bond buying plan until 2014, positive data would help strengthen the case for a sooner than expected pullback.

Posted-In: Commerce Department European Central BankNews Commodities Forex Global Pre-Market Outlook Markets Best of Benzinga

 

Related Articles (BNO + BROAD)

View Comments and Join the Discussion!
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com

ECB Cuts Rates, Sends Euro Sliding

Benzinga's Top Upgrades