Oil gets support from expectations on the effectiveness of OPEC+
The price of oil on Tuesday 26 March at 17.00 GMT was increased relative to the previous close of 1.4% to 67.75 per barrel, trying to get back to the highs in November last year in the area of 68.7 per barrel.
The market of “black gold” gets support from expectations on the effectiveness of OPEC+ in the control of oil prices from decreasing by reducing oil production.
In particular countries of the agreement on production cuts considering the option of holding a meeting of the monitoring Committee of OPEC+ may 19 in Saudi Arabia. While Russia has not yet reached the target level (the first half) to reduce oil production within the OPEC deal, but goes in this direction and planning to get to the goal at the end of March – beginning of April, said the head of the energy Ministry of Russia Alexander Novak.
OPEC+ agreed to reduce in the first half of the total production by 1.2 million barrels per day from October 2018, 228 thousand of them are in Russia.
Expectations the publication of data on the dynamics of energy reserves in the U.S. last week also supported oil prices, as experts predict a decline in oil reserves by 2.4 million barrels.
The pair EUR / USD is moving lower, again testing a round support level of 1.13. The pressure on the European currency has uncertainty about Brexit.
The British parliamentarians will vote on Wednesday on various options for further action related to Brexit. They have twice disagreed with the proposed Teresa may, the terms Brexit. In the end, the EU has set the UK a condition: if the document will be approved this week, the UK leaves the EU in may, if not – then the British government should submit a plan of action by April 12, or the country will leave the EU without an agreement.
In addition, a negative for the Euro were estimates by research company Gfk, the consumer confidence index for the German economy in April fell to 10.4 points, while experts predicted saving rate at the level of initial rating Mar at 10.8 points.
In the end, by 1700 GMT, the Euro declined with the start of trading on the last fixing by 0.25% to 1,1285 dollar.