U.S. indices are on course to open a little higher on Wednesday, buoyed by stronger earnings from Apple on Tuesday and ahead of some important jobs data from ADP which will act as a precursor to Friday’s non-farm payrolls number.
The price of crude oil has bounced back a touch after Tuesday’s sell-off when Brent and WTI shed around 2% each. Oil prices fell in response to bearish news from not only the OPEC but also the United States. Reports from Reuters and Bloomberg suggested that OPEC oil output increased in July, which basically suggests that compliance with the production agreement declined further. However, given the renewed push by Saudi for better compliance from the OPEC, it remains to be seen if they will be more compliant in the coming months.
The battered dollar licked its wounds after reaching a 15-month low against a basket of global currencies during early trading on Wednesday, as investors repositioned ahead of a multitude of key risk events this week.
Crude oil prices pulled back from the big psychological resistance of $50 per barrel as the overbought market was met with reports of rising OPEC oil production and a surprise increase in U.S. crude oil supply as reported by the American Petroleum Institute..