Oil fears the completion of the transaction OPEC+
Tuesday went for the oil market, with mixed results. On the one hand according to the IAC Alpari once again, for the seventh trading day in a row, the updated local maxima prices, on the other, the day ended it, the prices decrease. Bidding started close to $70.9 per barrel for Brent. Around noon the price went up to $71,1 – the highest since November last year. Then turned, dropped to $70,0, and finished the day near $70,5. The market was influenced by the words of the Minister of energy of Russia Alexander Novak, who questioned the need to extend the transaction OPEC+ in the second half.
At the end of the day, the report of the American petroleum Institute showed a rise in crude stockpiles for the week by 4.1 million barrels, after rising 3.0 million barrels in the prior week. In the morning of Wednesday, oil was trading downwards, close to USD 70.3 per barrel. Likely daily range for today’s trading, Brent crude $69,7-$71.0 per barrel. The medium range which is defined by the closest significant support levels and resistance remains between $65,9-$77,9. Today, the energy information Administration, the U.S. will publish data on oil reserves. Is expected to rise during the week by 2.5 million barrels, after rising 7.2 million a week earlier.
Most of the major world stock indices finished Tuesday lower. The market pressured the revision of the IMF growth forecast for the world economy and most of the individual countries with decreasing, as well as a new round of trade war, this time between the US and the EU. And the Russian market, contrary to global trends increased. The ruble-denominated index Mosberg up 0.40%, the dollar index of RTS has grown stronger by 0.66%. Among the growth leaders – ordinary (+2,45%) and preferred (+2,03%) shares of “Sberbank”. The Dow 30 fell while on 0,72%.
In the morning of Wednesday the indexes of the Pacific rim countries were down 0.1-0.7 percent. But futures on the S&P 500 index was trading in the morning about 2.885 p., 0.09% above levels of closing of the previous trading day. Asian markets on the one hand, and the oil remaining close to the local price highs on the other, asking the contradictory external background before opening the Russian stock market, which will begin trading neutral. Likely day the corridor index Mosberg is in the range of values 2545-2595 points, RTS index — 1235-1260 points. Today production results for March will publish “ALROSA” and “Cherkizovo”.
The ruble began trading Tuesday, strengthening, has renewed highs since the beginning of the month, but finished the day slightly in the negative. At the end of the day on Masuria, the dollar calculations “tomorrow” rose to 64,9200 RUB (+4,25 COP.), and the European currency has grown to RUB 73,1325 (+6,25 COP.). Oil, which is trading this morning near the levels last night, will provide a neutral start of trading the ruble. The expected daily range for the dollar the United States — 64.3-65.6 per RUB, for the European currency was 72.4 73.9 per RUB.______________
Senior analyst at information-analytical center “Alpari”