Oil price: a Hurricane in the Gulf of Mexico into the hands of investors

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The rate of oil systematically developing upward momentum, sitting on the important level of 60 dollars per barrel. On Thursday, prices have risen in the area of 60,60, where konsolidiruyutsya during today’s morning trading, showing growth for the fifth consecutive day.
Traders digested the production growth in the United States to new record highs and again entirely focused on the war. Statement on the resumption of negotiations between Washington and Beijing cheered investors by returning the interest risk that is reflected in the dynamics of the oil market.
Additional support for Brent receives messages about the threat of a hurricane in the Gulf of Mexico. Tropical storm Dorian has increased to the status of a hurricane, in this connection earlier this week, Florida was declared a state of emergency. There is concern that the output speed of the winds increase.
Typically, these factors entail a surge in purchases of oil futures, but if the scale elements do not meet the expectations of market participants, the pullback is not less than quickly. So traders are likely to behave cautiously, especially in light of the continuing uncertainty on the trade front.
From a technical perspective, the weekly close of the quotes above the level of $ 60 will indicate improvement for picture rate Brent, and the focus will shift to the level of 61 USD. In the case of profit-taking in the role of the nearest support above the psychological mark.
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Gennady Nikolaev
Expert
Academy of management Finance and investment