Oil prices plunged 5% on Thursday after the OPEC and non-OPEC producers agreed to extend the oil production cut deal for nine months. Markets sold-off oil aggressively as they were expecting the cartel to announce deeper cuts to output. Furthermore, scepticism seeped into market whether the extension of the OPEC output cut deal will turn out to be effective, in order to limit supplies and stabilize oil markets.
Focus now shifts towards the US rigs count and prelim GDP figures due later in the day for fresh impetus. US Prelim GDP is the market value of all final goods and services produced within United States in a given period of time. It is also considered the sum of value added at every stage of production of all final goods and services produced within the US in a given period of time. GDP number has a direct effect on the Interest rate of the currency, it is one of the news indicators that affects FOMC’s decision directly.
In the meantime, oil traders and analysts are expecting huge volumes of crude to draw from storage tanks across the United States in coming weeks, which could offer some break to the prices.