The recent decision of Saudi Arabia and Russia to cut oil output initially scared the market and to some extent contributed to a prolonged rally in oil prices. However, oil traders' anxiety eventually subsided as they realized that other OPEC members might well increase their production volumes.
At the same time, the process of oil output increases requires heavy investment, staff, and time. Thus, other members are not able to replace the volumes supplied by the two largest oil-producing countries in the world.
However, given the latest macroeconomic reports showing that the Chinese economy is recovering and the European one is entering a recession, reduced oil production volumes will be quite enough to meet global demand.
In the face of a global recession, it is logical to expect lower energy consumption. So, after traders reassess their expectations, oil prices will most likely edge lower.
Nevertheless, the market dynamic has not changed much, with oil still trading at around $76 per barrel. In the short term, Brent crude is expected to keep moving in the range of $75 to $77 per barrel.
Meanwhile, gold gained value to $1,960 per ounce, driven by yesterday's drop in the dollar. If its bullish correction continues, the yellow metal will come closer to the level of $2,000 per ounce. Either way, we continue to witness an inverse correlation between the dollar and the most popular safe-haven asset.
As for the Russian currency, the dollar rallied to nearly 83 rubles, which came as no surprise. The market is clearly awaiting the outcome of today's meeting of the Bank of Russia. The regulator is widely expected to leave the key interest rate unchanged at a fairly high level. The central bank’s intention to keep monetary policy tight is likely to support the ruble. Moreover, given its local oversold status, the Russian currency has every chance of approaching 80 rubles per dollar. However, much will depend on follow-up comments from policymakers.
First of all, investors are hoping to receive some clues about further rate moves. If the regulator reaffirms its commitment to lift rates, the ruble may well gain strong upside momentum. The opposite rhetoric of the head of Russia’s central bank may bring the ruble further down. However, this scenario is unlikely.
That's all for now. We continue to follow developments in the financial markets. Subscribe to our channel and follow the news with us. See you soon!

00:00 Introduction
00:26 The situation on the oil market. Can Russia and Saudi Arabia be replaced?
00:42 Will this reduction balance out the recession?
01:15 Brent
01:32 Gold
01:58 USD/RUB
02:36 Russian Central Bank interest rate
03:01 Conclusion

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