Oil price will support the fed’s decision

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The global oil market still has no clear and guaranteed growth targets. Despite the fact that the baseline scenario of the reduction of oil production by OPEC countries+ has a stabilizing effect on the overall market, but external geopolitical factors outweigh the efforts of the OPEC countries.
The threat of a slowing global economy amid the us-China trade wars plays a key role for the oil market. As reduction of energy demand, primarily from China, could significantly undermine oil prices. The Outlook for the global economy look uncertain owing to the lack of confidence of a positive resolution of trade negotiations at the upcoming two-day meeting of the negotiators of the two powers in Shanghai.
The only thing that can significantly support world oil prices, so the decline of the basic interest rate of FRS of USA. What, in principle, aimed at the majority of market participants. Amid the ongoing trade wars between the US and China, the oil market has experienced considerable pressure due to reduced energy demand due to the slowdown in the global economy.
The reduction in the rate of the U.S. Federal reserve will reduce the negative effect and together with the base case of reduced oil production in OPEC prices for oil can resume stable growth. The only opposition to growth can be problems associated with the demand that will cast a shadow on global growth. But the fact that economic growth in the USA slowed down not as much as expected, the prospects of oil consumption can stimulate demand for energy. Given the current impact factors, the price of oil Brent has the growth potential to 65.00 per barrel. The American shale oil WTI may rise to 58.40 per barrel.
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Gaidar Hasanov
Expert
“International financial center”