Oil price reached record high to $65 on news from USA
Slowly but surely, oil prices are moving North. Confirming the breakout level of $ 64 a barrel, Brent has exceeded $ 65, noting the 2-week highs in the area of 65.25, where he encountered the 200-day moving average, which acted as the local intermediate resistance. In this case, if the quotes will overcome this area, it will finish July in negative territory.
In the last days of recovery in oil prices contributes to a number of factors. This cautious optimism about the resumption of trade negotiations between the US and China, and the expectation of easing from the fed, and the continuing tensions around Iran, and the impressive reduction of energy reserves in the United States. By the way, yesterday’s API report showed that crude oil inventories last week fell by 6 million barrels, whereas gasoline inventories fell by more than 3 million barrels.
If the official release of the energy would also be bullish, this will help for the market, although in the short term dynamics of overall promises to be discreet because of the carefulness of the players in anticipation of the decision of the U.S. Federal reserve, which will affect the behavior of all asset classes, including oil. Assuming that the tone of the Central Bank is not as “soft” as included in the price of Brent crude might fall back and lose part recent time points.
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