Oil became a geopolitical tool of blackmail
The price of Brent crude oil on Friday 19 July increased relative to the previous close on 1% to totals 62.52 $ per barrel.
The market of “black gold” tries to be adjusted upwards, anchored above 62 dollars after four trading sessions of decline to one-month lows to 61 USD per barrel.
Support to oil quotations comes from another escalation in the middle East. The US President Donald trump said that the US Navy ship shot down in the Strait of Hormuz an Iranian drone that was approaching him too closely. According to reports, it was the amphibious assault ship Boxer with Light Marine Air Defense Integrated System (LMADIS), combining optical and electronic technology with the functions of the radar.
Iranian authorities say they did not lose combat drone in the Strait of Hormuz. Earlier this week, representatives of the Iranian armed forces announced the arrest of a foreign tanker smuggling oil. Through the Strait of Hormuz is moved one third of global marine oil and gas supplies.
International economic Agency (IEA) has reduced the forecast of growth of oil demand this year. Due to the slowdown in the global economy and especially China – it will only rise by 1.1 million barrels a day, although in June was expected to grow by 1.2 million barrels per day. However, oil production in the U.S. will grow by 1.8 million barrels per day in 2019, against 2.2 million barrels last year.
The Euro against the dollar is reduced, secured below the level of 1,125. The participants of trading forex act out the expectations of the ECB’s monetary policy (DCT) to support the Eurozone economy. The next meeting of the ECB for monetary policy will be held next week.