Oil in limbo, but managed to recover
On Wednesday, the oil market remained the uncertainty of which day provokes rather sharp price movements in both directions. This time Brent was able to grow in a rebounding from support at the approach to the level of 61 dollar for barrel, the price closed closer to the upper border of the intraday range above 62,50.
Despite yesterday’s modest rise, the market remains in limbo. The main uncertainty at this stage serve as trade relations between China and the United States. In his annual message to Congress, trump was mean to comments on this issue, which again led investors to doubt the conclusion of the transaction until March 1. In this context, oil traders will closely monitor a new round of talks, which will be held next week in Beijing.
Moderate optimism on the local market has brought the report of U.S. Department of energy, which was not as bearish as the API data. According to the official release last week crude oil inventories in the country rose by 1.2 million barrels against the forecast of +1.8 million gasoline Inventories also increased more modest expectations, at 0.5 m, consensus +1.5 mln Production remained at a record level of 11.9 million barrels per day.
On Thursday, Brent shows the inability to develop momentum yesterday, trading with a slight downside bias. This only confirms the unwillingness of players to push the barrel to a more respectable levels because of the uncertainty regarding trade negotiations and amid rising dollar, which continues to be strengthened across the entire spectrum of the market. Given current sentiments, to the end of the week prices are unlikely to make a significant breakthrough in one direction, but bearish risks still prevail.
Analyst social network for investors
eToro in Russia and the CIS