Oil continues to climb

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In Asia, equity markets were mostly negative trend, although by the end of the session, the selling pressure eased. European stocks earlier in the session traded ambiguously and with a few changes.
If in the course of the day tensions over trade wars subside, the regional benchmarks will be able to stay in positive territory. Russian indices started in the green zone, but the growth potential seems limited. On the one hand, support is provided by expensive oil, on the other – inhibits the caution of foreign investors.
Yesterday, Brent jumped to a mark of 78 where corrected, but remained in good intraday gains. Sentiment on commodities has supported the actions of trump, who insists on a complete cessation of purchases of Iranian oil to its allies.
Thus, the prospect of reduced exports from middle Eastern countries is stronger than expected, fueling fears of shortages of global supply, despite the willingness of the OPEC countries led by Saudi Arabia to make up for any lack of barrels. Brent becomes more expensive for the fifth day in a row, and in the short term is quite able to continue climbing. However, there is the threat of a partial exit from long positions on signs of overbought in line with the bullish trend.
The ruble opened with a gap down, which is logical, given the continued rise of the dollar across the spectrum of the market. The pair dollar/ruble managed to reach the highs in the area of 63,40 RUB, where he met with local resistance and now moving again in the direction of RUB 63 around which the rates continue to oscillate.
Limit the pressure on the Russian currency, high oil prices, while interesnoye mood and the interest to buy dollar play against the ruble. If during the day “American” will undergo a fix profit in Forex, it will help our currency to regain part of the losses.
Nathan Lambert
Head of research,
Global FX