For the week of October 11 to 14
Iraq’s oil minister is going against the grain, urging oil and natural gas producers to continue to increase their output in 2017. Iraq’s current oil production is 4.43 million barrels per day. However, statements by Vladmir Putin suggest that Russia will back OPEC’s recent push to cut oil production proved stronger as oil prices trended up significantly through Monday. These statements have since been subject to some skepticism. Prices were up by 3.09 percent to $51.35 per barrel. The International Energy Administration has confirmed what many would have assumed, that supply and demand will return to balance much quicker if the OPEC deal occurs. Prices are giving back some of its strength this morning and are currently down by .56 percent.
A London court is working to determine whether Teresa May has the ability to implement Article 50 and begin the Brexit process whenever she likes, and without discussing with other lawmakers. If it is determined that she cannot, the process could take upwards of a year and may even fall apart as it is put through the House of Commons and House of Lords.
It will be a relatively slow week for data in with the most significant piece of data this week being Housing Starts which were released this morning. Housing starts for September released stronger than expected at 220.6K while expectations were calling for 190.0K. This is the largest number of starts this indicator has shown in a year. August’s housing starts figure was revised upward slightly to 184.2K.
There is little expected out of the United States this week as well. The Monthly Budget Statement is expected this week and will be followed by the release of the FOMC meeting minutes on Wednesday as well as retail sales and the University of Michigan releases on Friday.
The Canadian dollar continues to suffer to recent strength in the U.S. dollar driven by interest rate expectations. Todays expected range is 1.3157 – 1.3257.
Posted by Concentra Financial Markets