Oil price: Investors were afraid of a mark of 66 dollars
Oil prices continued to rise on Wednesday, although by the end of the day the picture is somewhat blurred due to profit taking. Players afraid of the psychological mark of $ 66 per barrel, sending Brent under 65,50 dollars at the closing. In General, the growth trajectory remains, by and large, due to the previous factors.
The first is geopolitics, where in the center of attention – the conflict between the US and Iran. Tensions only intensified after trump’s threats to destroy Iran, if the “attack on anything American.” Also out of sight of investors not out of the forthcoming meeting of leaders of the United States and China. Both sides made positive comments before the summit, expressing hope for progress in trade negotiations.
Pleasantly surprised and the official report of the Ministry of energy, which reflected the highest for three years, the reduction of stocks of crude oil by nearly 13 million barrels. At the same time stocks of gasoline fell by almost 1 million barrels, while distillate stocks – by 2.4 million, also Decreased the production of crude oil, which caused a strong positive market reaction with the subsequent partial rollback.
In the short term, Brent could continue to rise, reflecting the above factors. But it is likely that prior to the summit players may opt for more aggressive profit taking to reduce risk. The focus is now a mark of 66 dollars, it sure is a break would improve the short-term technical Outlook.
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