Oil price continues recovery after sudden collapse
The oil market behaves. In General, the prices remain high but daily charts are saying about the nervous situation and some confusion in the raw materials segment. On Tuesday, Brent instantly fallen more than for the whole figure and subsequently failed to fully compensate for the loss, though, and reached the positive territory.
The reason for the panic reports in the media that Saudi Arabia agreed with the requirements of the trump to increase the production. Against this background, then returned fears about the return of the surplus supply on the still not fully balanced world market black gold. In this context it will be interesting the behavior of the officials of the Kingdom, which should give clarification on this issue in the coming days.
Meanwhile, the energy reserves in the US continue to fall. According to the API, last week crude oil inventories decreased by 4.5 million barrels, gasoline inventories fell by 3.07 million, and distillates in the range of 500 thousand barrels. If tomorrow’s report of the energy transferred in connection with the celebration of independence Day, will confirm a further decline in stocks, the situation on the American market will support a bullish sentiment for Brent.
In the morning the dollar index continues to test the mark of 78, showing the presence of the upward bias. In the near future the market will wait for comments from Saudi Arabia that will determine the short-term motion vector of the prices. Rather, the Kingdom will try to calm the market a neutral review. On the other hand, possible negative comments from other members of OPEC as a reaction to the recent rumors on increasing the production.
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