US MORNING: Oil Slides as USD Firms Up

Equity futures are close to unchanged after a choppy morning in Asia and Europe

The US dollar index is modestly rebounding after sliding over 4% last week

Oil traded down as Russia and OPEC delay negotiations about supply cuts

Oil Slides 8%

The Asian and European trading sessions on Monday kicked off with a significant drop in oil prices, as Russia and Saudi Arabia continue to shy away from a deal to produce supply cuts. In the meantime, demand for oil is estimated to have declined by over 25% from the peak.

As of writing, WTI traded almost 7% lower, close to the lows of the day, just above $20 per barrel. BRENT crude also declined, shedding 6% and marking a new low this month. Being heavily dependent on oil exports, the Canadian dollar and Norwegian krone both traded lower into the US session open.

US Dollar Perks Up

The US dollar is trading slightly higher this morning against its major counterparts and emerging markets currencies. Overnight, President Trump rolled back on his plan to push for loosening restrictions caused by the pandemic before Easter.

Social distancing restrictions have been extended for another 30 days, as Trump’s advisors suggested that any pullback earlier could result in more deaths. Meanwhile, the US dollar rallied against gold and silver after taking a beating last week.

Stocks Unchanged

US equity futures opened over 2% lower during the Asian session, only to recover towards the European open and trade unchanged as we drift towards the opening bell on Wall Street. The German DAX is hovering just above its closing levels on Friday, currently up by 0.6%.