Oil price: the US gave the market an unexpected surprise
USA unexpectedly for many market participants was presented with another pleasant surprise. The United States trade representative has postponed the introduction of 10% tariff on some products manufactured in China, which allowed the stock and commodity markets to show staggering growth.
In this regard, oil prices rebounded in time by 6.5%. However, after the publication of data on stocks of crude oil in the United States from the American petroleum Institute (API) prices slightly adjusted.
Easing tensions between the US and China is temporary and makes no guarantees that the conflict will be settled in the future. Therefore, Saudi Arabia will adhere to the plan to further reduce oil production to preserve prices at the current positive levels.
Now the barrel is worth more than $60,00. This level is only slightly below until needed in Saudi Arabia for the formation of a positive balance.
In addition to the geopolitical situation on the oil quotes will affect the data from the energy agencies of the United States. The speculative part of the commodity market will be based more on rumors than on facts. This will cause high market volatility.
The big players who adhere to the strategy, expecting a meeting of representatives of OPEC in early September in Abu Dhabi. Following the meeting, will implement the balance of power in the oil market. For the most part, large investors are now out of the market. They understand that the United States at any time can take reverse steps with respect to China. Risks nobody is not going to take. And now the basic strategic scenario is likely to come from OPEC countries.
Today, the oil market can affect the data from the Agency of energy of the USA (EIA). If crude oil inventories will be higher than projected, the Brent crude oil could correct to $60.00 per barrel, shale and WTI – to $55,44. Otherwise, both grades of oil should be expected to rise on average by 1.7%.
“International financial center”