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Page added on August 12, 2018
Oil Is Losing Its Grip Over the Currencies of Top Energy Producers
Oil’s typically a key driver of the world economy, and an indicator of the industrial cycle. Higher prices can act as a drag on global growth while enriching nations who suck it out of the soil. When other drivers such as politics take hold of their currencies, crude can become a useful diversifier for a multi-asset portfolio manager, SocGen’s analysts, including Sophie Huynh said in a note.
“The long-term relationship that existed between oil and oil-linked currencies has broken down,” they said on Thursday. “We attribute this to the increasing role of idiosyncratic factors in both oil and currencies price action.”
International disputes, elections and other political shifts have replaced crude as a key driver of the currencies, with Canada and Russia’s relationships to the U.S. among the biggest factors spurring depreciation, according to the analysis. Oil, meanwhile, is increasingly being driven by supply-side factors, with OPEC reasserting its power over the market. Brazil goes to the polls in October.
Nafta, Sanctions
“For the Russian ruble, the sanctions have a more significant impact than oil prices, and for Canada’s dollar, it was overshadowed by uncertainty over Nafta,” Georgette Boele, a commodity and currency strategist at ABN Amro Bank NV, said by email.
Yet SocGen sees the link remaining strong elsewhere — notably to the Norwegian krone, making it their top pick among producing nations on the prediction that Brent-grade oil prices will rise from about $72.60 now to $78 a barrel by year-end. Oil is up almost 9 percent this year.
The krone should benefit from more expensive oil and strong domestic price growth in coming months, Huynh said. “Norway generates the highest inflation rate among G10 countries with a current-account surplus.”
13 Comments on "Oil Is Losing Its Grip Over the Currencies of Top Energy Producers"
print baby print on Sun, 12th Aug 2018 3:40 pm
It is really incredible what an immense power banksters lobby has. They can screw the countries which can hold the whole world in their pocket.
Russia 10mbpd
Iran 4mbpd
Venezuela 3mbpd
If those countries stop exporting the oil , the world would be on its knees . At contrary worthless $ can put them on their knees. Practically they sell black gold for the worthless toilet paper INCREDIBLE.
print baby print on Sun, 12th Aug 2018 3:44 pm
There is no other answer except that same banksters lobby runs those countries.
Cloggie on Sun, 12th Aug 2018 3:58 pm
More signs that Turkey is distancing itself from the West as it has refused “help” from the IMF to support its lira currency:
http://www.spiegel.de/wirtschaft/soziales/tuerkei-krise-recep-tayyip-erdogan-lehnt-hilfe-vom-iwf-ab-a-1222821.html
Erdogan said he was no longer willing to give up his independence.
In unrelated news, signs are that Morocco is removing African invaders heading for Europe in grand style from the coast and prevent them to cross the Straight of Gibraltar.
http://www.spiegel.de/politik/ausland/fluechtlinge-marokko-bringt-offenbar-hunderte-menschen-ins-landesinnere-a-1222830.html
Europe has agreements with Turkey and Libya in the billions to make them close their borders and stop gate crashers. The suspicion is Europe has now a similar agreement with Morocco.
print baby print on Mon, 13th Aug 2018 1:58 am
Fed gave free heroin to the junkies. ANd get them hooked more . The countries all over the world increased amount of debt because of the free money QE, and now FED can screw them no more free drug , an the addicts scream.
Greed , that’s ruined the human kind
George Straight on Mon, 13th Aug 2018 7:40 am
What was the bumper sticker of the 70s?
FOOD for OIL…looks like it’s coming to that..Oh Dear.
print baby print on Mon, 13th Aug 2018 7:58 am
good one george
Sissyfuss on Mon, 13th Aug 2018 6:40 pm
George, you’re dating yourself. And I should know.
makati1 on Mon, 13th Aug 2018 7:50 pm
“If individuals, corporations, state and local governments and the federal government all stopped going into more debt, we would plunge into the greatest economic depression in U.S. history immediately.
The system is deeply, deeply broken, and the only way that we can keep this debt bubble going is go keep accumulating even more debt.
Anyone out there that believes that the U.S. economy has been “fixed” is completely deceived. NOTHING has been fixed. Instead, our long-term financial imbalances are getting worse at an escalating pace.”
http://theeconomiccollapseblog.com/archives/10-numbers-that-prove-that-americas-current-financial-condition-is-a-horror-show
Slip slidin’…
Free Speech Forum on Tue, 14th Aug 2018 2:28 am
Wow.
Americans are such pussified snowflakes now that they want the Gestapo to hold their hand when they pee-pee.
Americans used to support freedom, but they have now morphed into Nazis and Communists. Americans will easily go to the gulags because Fascists think the police state only affects Commies and Communists believe tyranny targets Nazis.
Conservatives tend to support small government, be moral, go to church, be responsible, be independent, and oppose killing unborn children. Conservatives generally dislike alcohol, drugs, premarital sex, and minorities.
Liberals often favor science and Socialism and are impulsive. Leftists are more likely to support welfare, drinking, drug use, homosexuality, and open borders.
Since Americans tolerate debt, wars, nanny state laws, Obamacare, food stamps, regulations, offshoring, homosexuality, increasing taxes, illegal immigrants, security cameras, license plate readers, checkpoints, redlight cameras, speed cameras, FBI facial and voice recognition, curfews, gun bans, searches without warrants, mandatory minimums, DNA databases, CISPA, SOPA, NDAA, IMBRA, private prison quotas, no knock raids, take down notices, no fly lists, terror watch lists, Constitution free zones, stop and frisk, 3 strikes laws, kill switches, National Security Letters, kill lists, FBAR, FATCA, Operation Chokepoint, civil forfeiture, CIA torture, NDAA indefinite detention, secret FISA courts, FEMA camps, laws requiring passports for domestic travel, IRS laws denying passports for tax debts, gun and ammo stockpiles, laws outlawing protesting, police militarization, NSA wiretapping, the end to the right to silence, free speech bans, private prisons, FOSTA, TSA groping, and Jade Helm then what is to stop the elites from sending the 99% to the concentration camps?
The US has crossed every line.
Life has become unbearable. Who wants to live in a prison? Hard work is punished with taxes and regulations, jobs have been offshored, illegal immigrants are flooding the country, and laziness is rewarded with welfare.
Wake the fuck up.
makati1 on Tue, 14th Aug 2018 2:38 am
FSF: Very good summery of America today.
Davy on Tue, 14th Aug 2018 5:17 am
“FSF: Very good summery of America today.”
slip slidin translation:
Anything that reflects badly on the US I agree with. It does not matter if it is extreme or if it is even right or wrong. I love it all of it. I hate the US and everything about it.
Boat on Tue, 14th Aug 2018 8:05 pm
Free speech,
Your crying. Try working.
Cloggie on Wed, 15th Aug 2018 1:07 am
Conservatives generally dislike alcohol, drugs, premarital sex, and minorities.
Which minority in particular conservatives don’t like?
https://documents1940.wordpress.com/2018/05/21/european-america-is-over/
Inquiring minds like to know.