Oil price in the moment rose after report on US reserves
The rate of oil yesterday, started active growth after the energy Information Agency of the USA has reported a decline in crude reserves by almost 5 million barrels. The wave of speculative transactions went through the oil market and in time raised the price of black gold up to $62,40 a barrel.
The euphoria did not last long. Given that speculation was calculated only for some time, today the prices again began to rely on geopolitical factors. A protracted trade dispute between the US and China, slowing economic growth and rising demand for oil led to the fact that analysts have lowered forecasts of the prices for WTI and Brent this year to the lowest level since 2018.
Trade war became the primary factor which draws attention of large participants of the commodity market and leading analysts. In this respect, it is even ahead of OPEC policy and rising crude oil production in the United States. As trade conflict has a negative impact on the economies of the world, all hope that this time the talks will lead to agreement. However, nobody knows whether this will happen. It seems that none of the parties are not willing to make any concessions, although both have suffered the consequences of the conflict.
The US is also putting serious pressure on Iran, targeting the network of oil tankers. America announced new sanctions and was prepared to pay $15 million to anyone who can help disrupt the operations of the Islamic revolutionary guard Corps. Applying such aggressive tactics, the United States wants to bring Iran to the negotiating table. However, Iran does not resume the dialogue until, until he will allow you to export the oil. Nevertheless, the global oil market perceives neutral such disputes between the two countries.
OPEC will strive to ensure that before the end of the year to keep the average price of oil at around $60 per barrel. If you’re lucky with the successful resolution of trade conflict, we will see a price of $80. At the end of the week, Brent crude will trade at $61 per barrel and shale oil WTI at $56 per barrel.
“International financial center”