The oil market appears to be stabilizing for now, as many sources speculate that oil-exporting countries are about to take action and address the oversupply issue. OPEC+ has decided to hold an emergency summit this coming Monday, where many hope Russia and Saudi Arabia will be reconciled and end the price war they began.
This time around they might be more successful, considering President Trump has also spoken about the conflict ending soon, likely indicating that the United States will also respect production cuts, something it has never done in the past.
As a result of this news, Brent crude climbed to $32.59, while the WTI reached 26.41 dollars per barrel.
Today we expect a payrolls report in the United States, which complements the jobless claims data in an effort to describe the state of the labor market in the country. However, while jobless claims reports are weekly, this payrolls report includes data only up until March 12, so the worst of the pandemic will not be reflected in it. The markets are likely to take it with a grain of salt, considering how abysmally bad the jobless claims report was.
Yesterday’s unemployment data from the United States was bad enough to rattle the markets even today, and we can see losses all around the US stock indices. The US dollar, on the other hand, is strengthening due to investors’ desire to purchase safe haven assets today.
Meanwhile, as PMI data from Europe continues to disappoint, many expect that the eurozone will face a recession that rivals even the 2008 financial crisis.
