Oil: a Modest recovery attempt did not help prices

  • And
  • +A

On Wednesday, Brent made another humble attempt the resumption of growth, but not been able to attract buyers and eventually slipped to near 2-week lows in the area of 63,20 dollars per barrel. By the end of the day the futures partially reduced losses, but remained under pressure. In the morning session on Thursday quotations show a slight upward slope, aiming for the next resistance in the face of the level of $ 64.
The market continues to push new signs of de-escalating the middle East conflict. In particular, after reports about the readiness of the United States and Iran to dialogue, trump has appointed Senator Rand Paul, his emissary in negotiations with Taragana. Recall, Paul is known for his libertarian position and always opposes any sort of intervention. Thus, his appointment is, in fact, reduces geopolitical risks on this front involves the settlement of the conflict. For the oil market is further weakening the threat of supply disruptions from Iran.
Not inspired players and report of energy, which reflected the reduction in crude oil inventories of 3.1 million barrels versus forecasts for a decline of 3 million At the same time stocks of gasoline and distillates jumped by 3.5 million and 5.6 million, respectively, as demand from refineries has declined, which upset the bulls.
After a recent increase in demand for the dollar waned, the American currency was under pressure against major currencies.
In early trading Thursday, this factor provides some support for Brent, but this is definitely not enough to “pull” quotes above, especially that in equity markets, investors have not shown optimism, again focusing on the threat of escalation to trade war. Against this background, the potential recovery of the black gold quotes remain limited.
_____________________
Gennady Nikolaev
Expert
Academy of management Finance and investment