Oil price: the rhetoric of the U.S. Federal reserve pushed the price down by 1%

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Touching on the peak level of 65.40, Brent crude oil passed to the reduction, along with all risk assets after the rhetoric of the Federal reserve, which is expected to cut rates, was more restrained, as investors hoped for dovish tone of the regulator. In the end, the quotes declined by 1% and managed to test mark 64 dollars per barrel in the morning session on Thursday.
The negative impact from the fed, the oil market has limited the industry news. In particular, the energy Ministry reported another massive reduction in crude inventories of 8.5 million barrels. Fell and stocks of petroleum products, including gasoline (-,8 million barrels). While production is expected to have recovered after the recent cuts because of the storm in the Gulf of Mexico. Meanwhile, production in OPEC countries was at a minimum during the eight years of the level in July.
The negotiations, the U.S. and China ended without breakthrough, and the next round of discussions, the parties moved to September, which is also not the best way affected the sentiment in the commodity segment. While the markets digest the message the fed, risk assets will remain under pressure, and hence in the oil market in the near future should not expect the resumption of growth in prices, especially given the dollar rally, which was inspired by a more conservative rhetoric of the Central Bank.
In the short term, the focus of attention of players will remain the mark of $ 64 per barrel, while the immediate resistance is still presented in the form of 200-day moving average, which dropped around 65,20 per barrel.
Gennady Nikolaev
Academy of management Finance and investment