Monthly Pricing - 02/01/2020

GBP/USD soared to 1.351  as the Conservative Party saw a Westminster victory with a seventy-eight majority, and has since consolidated at a 1.30 average.

Brent also made considerable gains on its $60.73bbl open, reaching a $65 average following prospect of imminent trade deal, OPEC+ supply cuts, and rising Asian demand.

Saudi Aramco’s long-awaited IPO neared the sought-after $2tn valuation through localised, regional investment.

Price Drivers

Supply The OPEC+ cartel agreed to cut 2.1mbbl in production. French refinery strikes pushed up light, middle distillate prices.
Demand 1.3% monthly decline in US commercial crude stocks, EIA. EIA predicted a $2 rise in light crudes ahead of IMO regulation.
Geo-political Iraq’s PM resigned after mass protests. USA believes “Phase 1” trade deal with China will be signed in January.