The fall of oil will attract buyers
In the second half of the outgoing week sentiment deteriorated in the oil market. Faced with the “ceiling” in the area of $ 42.50 a barrel Brent moved to the retreat and during yesterday’s trading had time to look at the level of $ 40.
In fact, after five weeks of growth correction was imminent, and the quotes was only needed a pretext to rebound from the resistance area, for which the breakdown in the energy carrier is currently not catalysts. This occasion was the data the US Department of Energy, has notified of the impressive growth of commercial reserves of black gold to a new record value. At the same time hydrocarbon production continued to decline. Perhaps the trend of continuous increase in stocks can be attributed to the growth of oil imports in the United States that seeks to replenish stocks at low prices. The indicator imports rose to 8.38 million bbl. / Day last week.
It turns out that a potential higher energy prices will slow down the purchase of imported oil to the United States, which would eventually be transformed into a long-awaited reduction in stocks. On the other hand, for a more substantial increase in oil prices alone are not enough expectations OPEC April meeting, and even actual production freeze. Because the cause of the recent collapse of the black gold is in the excess of supply in the first place need to see the market trend is the decline in US stocks. In this sense, unfortunately, it turns out that something like a “vicious circle.”
While waiting for Brent exporters meeting in Doha, its fall will be limited, but in fact a constructive meeting, we will see the growth of quotations. Despite the fact that, according to the IEA and many market participants, this initiative will have no practical meaning, the oil that has shown impressive growth even on speculation more expensive after the events of April 17, unless, of course, the meeting did not fail. Thus, in the medium term we expect purchases of oil on dips. Brent today’s dynamics will largely depend on the general mood of the dollar. If the currency will develop a downward correction that started in trading in New York, the quotes will be able to return to the area of $ 41 / bbl.
The euro will fall , but the ruble may Another one fairly quiet day in the currency market , as most of the day, we do not We observed no significant…
US stock market closed with a fall , Dow Jones fell by 1.05% The US stock market closed trading Friday fall in the background of negative dynamics on the…
NZD / USD: the next meeting of the Fed and RBNZ – in March. trading recommendations New Zealand is the largest exporter and supplier of dairy products on…