Oil price: Big investors took a pause on the eve of the G-20
The increasing volatility in the oil market due to the actions of speculators who carry out monitoring of news background and are trying to make money. Large investors are in no hurry and for the most part are out of the market. They are awaiting the outcome of the G20 summit and the meetings of the OPEC countries.
The reaction of speculators was in principle expected. The news Agency of energy of the USA has published data on stocks of commercial crude oil which was much below forecasts (-12,79 million barrels).
On the other hand, there are still concerns about the fact that Donald trump and XI Jinping agree on the G20 summit. The negotiations will probably be delayed, and the markets will regain hope for a possible settlement of the trade conflict in the future.
However, the big players will be closely watching the G20 summit and the most critical to each word as declared by the US and China. Each major investor will be in its own to interpret the information received and depending on her to act on the oil market.
In this regard, will be greatly enhanced market volatility. Both in principle and at the meeting of OPEC in early June. The main issue for OPEC members+ is how much you need to reduce the volume of oil production to the end of the year that the oil market fell to apparent at the moment, mark. It’s prices range from $64,00 – of 65.00 per barrel.
Despite the fact that the budget of Saudi Arabia laid in price from $65,00 per barrel, it is necessary to ensure that the global oil market was trading in the range of $70,00-75,00 per barrel. It is necessary that during growth volatility, due to various external factors, was expanded a corridor of the prices. It is important that the lower boundary of this corridor was not less than $65,00 per barrel.
The rest of the day we should expect the reduction of volatility while maintaining the current external conditions. The range of quotes can vary from $64,87 to $66,90 for Brent crude oil and us WTI – from $58,26 to $59,00 per barrel.
“International financial center”