Oil: Investors do not believe in further growth

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In the first half of trading on Monday, oil futures have made modest attempts to restore, but came across an offer on the way to around $ 63 per barrel and is again headed in a southerly direction, noting the lows around $ 60,60, noting the fifth day of decline in a row.
Market dynamics indicates that the players are not yet ready to purchase futures, although attractive levels, and thus in the raw materials segment continues to be dominated by concerns of falling global demand due to trade wars, which has recently deteriorated significantly. Saudi Arabia yesterday hinted at the extension of the deal, OPEC+, but verbal intervention will not last long – many due to the combination of risks to the global economy and further growth in supply from shale companies in the US. The more such signals from the Saudis is not enough in light of the intentions of Moscow to increase production in the second half.
In the second half of the day, investor sentiment in the stock markets has improved, but it did not help oil prices, which failed to recover above the level of 61. Given the behavior of players, to expect a sustainable recovery in Brent near future is not necessary, and potential new attempts of rebound will likely again attract those wishing to take profits on more interesting levels.
Gennady Nikolaev
Academy of management Finance and investment