September ended with a bang for Oil. A last-minute deal by OPEC on the 28th saw an agreement to limit output to 33 million barrels a day.
Brent crude surged almost 6% when the news came out, closing at its highest in 3 weeks at $49.48. Meanwhile WTI Oil saw a month high with a 5% spike, trading at $47.55. This was followed by the US Energy Information Administration (EIA) report showing a decline in inventories by 7.9 million barrels in the week ended 23 September.
Let’s look at what you might have earned if you had traded Brent or WTI on 28 September.
If you had bought one lot of OIL at 15:00 GMT with an investment (or amount to risk) of $500 with the open price at 44.58 – and closed it at 20:00 GMT when the price hit 47.16, you might have made $2,580 assuming that you used a 1:200 leverage. Not bad for just a few hours of trading! Note that this example does not take into account spread and the use of leverage means that you not only magnify the profit potential but also the amount you might lose.
So if you were shorting oil you would have been in for a loss, which is why it’s important make the use of easyMarkets’ risk management features which guarantee your stop loss and protect you from slippage. With dealCancellation, you even get the option to cancel losing deals in an hour.
September also ended with a shock for the stock markets with Deutsche Bank shares dropping 7%, a 30-year low, after worries emerged on the bank’s financial health. In response Germany’s DAX index shed 1.6%, the French CAC dropped 1.7% and UK Footsie was down 1%. The euro also fell to a 2-month low to 1.081 against the safe-haven Swissy (CHF).
So that’s a quick look at how September finished. There’s plenty of action coming up so let’s take a look at some of the hottest economic indicators to watch this October.
7 Oct
12:30 GMT USD NFP (prev 151k, est 176k) & Unemployment rates.
14:00 GMT GBP GDP estimate.
18 Oct
08:30 GMT GBP CPI & Core CPI.
19 Oct
02:00 GMT CNY GDP.
20 Oct
11:45 GMT EUR ECB Interest rate decision.
12:30 GMT EUR ECB Monetary policy statement and press conference.
28 Oct
12:30 GMT USD GDP (Q3).
