Brent steadies above $ 50 as US NFP takes centre stage

By FXStreet FXStreet (Mumbai) – Brent oil on the ICE trades with moderate losses in the European afternoon, recovering from a brief dip below 50 marker after European traders continued to weigh the implications of ECB’s downward revision of the Euro zone growth forecasts on the bloc’s oil demand.

Oil cautious ahead of NFP

Currently, Brent trades nearly -0.36% lower at 50.48, recovering from session lows reached at 49.69 levels. Oil traders remain nervous and refrain from creating fresh positions before the release of the key US jobs data which is likely to have major influence on the US dollar and eventually on the dollar-denominated commodities such as oil.

Moreover, markets assess the consequences of Eurozone’s lowered growth forecasts on the oil demand from the euro area economies amid persisting oversupply worries.
Also, many banks slashed their price forecasts for Brent which further added to the downside in oil prices.

Commerzbank in Frankfurt reduced their 2016 Brent forecast by $10 a barrel. Barclays cut its 2015 Brent price forecast by $5 to $55 a barrel on Friday and by $5 to $63 a barrel for 2016. BNP Paribas lowered its Brent price forecasts on Thursday to $56 per barrel from $62 for 2015 and to …read more

Source:: FX Street