Markets are now eyeing the latest breakthrough in Brexit on Christmas Eve. Many are waiting for a joint conference likely to be held by British PM Boris Johnson and EU Chief Ursula von der Leyen in the near future to discuss a range of matters about Brexit.
According to multiple media reports, the two sides will speak before sharing the information with the presser. More discussions are being held on key issues being debated about fisheries and level playing fields. The issue has reportedly been discussed on Christmas Eve this year.
It turns out that the results of the discussions are considered quite positive with the leaders of the UK and EU is now in a position to reach an agreement. However, of course, the official decision has not been taken and decided by the interested parties.
Is It a Happy Ending?
The European Union (EU) and the UK have finally reached a post-Brexit trade deal. It means that they have ended a months-long dispute over fishing rights and future business rules. According to rumors, the text of the agreement was made after the meeting.
The text of the agreement had not yet been released, but Boris Johnson claimed the deal was good for the rest of Europe. The UK will be out of EU trade rules by next Thursday. That means for about a year after officially leaving the 27-nation bloc.
That means there will be major changes, particularly from the business sector. It is because the UK and EU form two separate markets. However, a trade deal after Brexit would be of great help to the business sector in the UK.
Decisions Taken Fairly and Equally
Ursula von der Leyen said the Brexit deal was balanced and for sure fair. She guarantees that the UK remains its trusted partner. The British PM said that his country did not get everything it wanted on financial services, as an important part.
However, despite these circumstances, this decision will allow the dynamic city of London to progress and prosper as before. Lord Frost, a Britain's chief trade negotiator told that the full text of the free trade agreement would be released soon.
On 30 December, the UK Parliament is planned to be recalled to vote on the deal. In addition, the deal made also needs to be ratified by the European Parliament before it can finally be ratified as one of the new official rules governing several important sectors.
Trade Deal Makes Oil Prices Rise
Oil prices reportedly rose slightly on Thursday. It was heavily influenced by the post-Brexit trade deal struck between the UK and the European Union. According to Reuters, on Friday 25 December 2020, the US crude West Texas Intermediate CLc1 closed up 11 cents to $US48.23 a barrel.
Meanwhile, Brent futures closed 9 cents higher at US$51.29. For the week, U.S. crude was reported to be down as much as 1.6% while Brent corrected 2%. For information, the market has strengthened sharply since the end of October due to the Coronavirus (COVID-19) vaccine.
They are in the process of getting approval in many countries. A deal on Brexit is very supportive of that commodity price movement. However, the impact of COVID is the dominant driver in the oil market. This was conveyed by Andrew Lipow.
He is the president of Lipow Oil Associates, in Houston, Texas. Now it seems that the distribution of the coronavirus vaccine is being awaited by many sectors in the market. One of them is the oil market. The sector is waiting for a broader distribution of vaccines.
It is crucial to get the community back on and on the air. Now, some countries have decided to vaccinate their communities. Meanwhile, many other countries are still waiting for the final stage of vaccine trials before they are finally considered ready for use.
