Oil is waiting for messages from China
After vague attempts to restore sales in the oil market resumed on Friday. As a result, the asset lost more than 2%, and by the end of the week showed the worst two months results, finishing in the mark 67.
All last week the commodity segment was depending on General market sentiment and investors ‘ attitudes toward risk. The fundamental realities of the oil market retreated on the back burner, replaced by fears about global demand posed a threat to the global economy against the backdrop of escalating conflict in trade between the US and China.
Additional film has brought US data. The extraction of shale deposits continues to grow and constantly update the records. Drilling activity also increased. Last week the number of active rigs, according to Baker Hughes, reached a three-year high. Their number has increased by 11 units to 808 units.
This week Brent will continue to trade with an eye on the trade friction between Washington and Beijing. If the tension subsides, it will be a reason to buy a depreciating asset. In this context, the commodity market segment, as global markets will be hard to wait the speech of the Chinese President XI Jinping at a forum in Boao on Tuesday.
In the short term quotes, you need to keep from falling under the mark 66,60, to get another wave of sales. On Monday, Brent opened up a gap and traded with a slight increase due to the slight decrease of global investors. The nearest upward target is in the area of 67,70.
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