Oil drops after data on the production growth

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The price of oil on Thursday 28 February to 14.35 MSK decreased by 0.71% to 66,11 dollars per barrel. The market of “black gold” moderately adjusted downward after a two-day growth. The growth of oil production in the U.S. and weak macroeconomic statistics on China (the largest importer of oil) supports this correction.
US Department of energy recorded at last week’s increase in oil production in the country per 100 thousand barrels per day to a record of 12.1 million barrels.
Meanwhile, the purchasing managers ‘ index (PMI) in the industrial sector of China in February fell to 49.2 from 49.5 points in the previous month, while experts expected its preservation at the same level. The index value below 50 indicates slowdown of economy. The February indicator also proved to be the minimum in March 2016.
The pair Euro-dollar is growing up and is already trying to gain a foothold at the level of 1.14. The main pressure on the U.S. currency comes from the soft rhetoric of the head of the fed Jerome Powell. Two of his recent speeches in the us Congress about the “patient” approach to decision-making on monetary policy (DCT) investors concluded that the regulator will make a pause in interest rate hike. Soft prep financial controller usually puts pressure on the national currency.
To 14.34 GMT the Euro was up 0.4 percent from the start of trading on the last fixing and was 1,1413 dollar.
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Denis Povtoreiko,
Analyst
GK Forex Club