Oil Prices Declined, But USD Strengthens In Latest Trading

Markets were mostly lower during the latest session, with energy stocks under pressure after oil prices extended their losing streak during the U.S. session.

In Australia, the ASX 200 declined 0.56%, while the energy sector declined 1.25%. Japan’s Nikkei 225 fell 0.29% in mid-morning trade. Hong Kong’s Hang Seng index fell 1.19% and the Shanghai composite plunged 0.33%, while the Shenzhen composite reduced 0.25%.

Crude oil prices fell more than 2% during Wednesday trading despite an unexpected decline in the U.S. crude oil inventories, which fell massively by 560000 barrels a day, compared with analysts’ forecasts of 4 million barrels build. Traders concerns over the OPEC deal has been impacting crude oil prices over the last couple of sessions, as several major player are retreating from cutting and freezing their production.

U.S. crude futures prices settled around at $49.18 a barrel, after plummeting 1.6 % during U.S. hours, while Brent declined 1.8% to around at $50 a barrel.

On the earnings front, Samsung generated a decline of 30% in operating profit to 5.2 trillion won ($4.5 billion), compared with same period of last year. National Oilwell Varco also extended their downward trend in the third quarter

The US Dollar exchange rate also finished the day with mix results, by generating gains over the yen and commodity currencies, including Canadian Loonie exchange rate, but declined against its European rivals.

USD conversion rate gained momentum against the basket of many currencies during the American session excluding against the pound exchange rate. Cable remained near the highs at all times, with the pound recovering ground in the market after yesterday’s decline.

The US Dollar index, which gauges the US dollar against the basket six major currencies, bottomed at 98.26, the deepest level since last Thursday. However, the Dollar currency rate then rebounded and surged to 98.55, slightly beneath yesterday’s closing price.