Oil pops above $73.00, but the price outlook remains clouded as an Oil surplus for 2025 looks inevitable.
Morgan Stanley cuts its Brent Oil price forecast by $5 to $80 per barrel for the end of 2024.
The US Dollar Index hovers around 101.00 ahead of Fed Chairman Powell's speech.
Oil prices are rebounding slightly on Friday, extending Thursday’s gains after snapping the losing streak for this week. The rebound, however, could be short-lived as the price outlook remains clouded by concerns over demand and a vast supply surplus at hand if OPEC does not alter the upcoming unwinding of production cuts. OPEC is caught between a rock and a hard place, because sticking to their earlier commitments makes the cartel creditworthy, while coming back on previous statements would make markets less compelled to listen to any further communication from OPEC, and therefore losing grip on Oil pricing.
The US Dollar Index (DXY), which tracks the performance of the US Dollar against six major currencies, is facing a moment of truth. The annual Jackson Hole Symposium gets underway with the main event being a speech by US Federal Reserve Chairman Jerome Powell. The speech has a lot of weight as it is seen as a market-moving and policy-changing event, outside of the scheduled Fed policy meetings.
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