Oil prices have risen sharply – what next?
Oil prices rose sharply Wednesday evening after Washington ended the regular meeting of the fed on monetary policy, as oil is associated with the rate of the fed? How this decision will impact on its value? What is the forecast for the price of crude blijaishee term and longer term? – all these questions are answered by our speaker.
First and foremost on the interest rate decision of the fed subsided the U.S. currency and the total environment futures U.S. dollar index lost 0.74%. Due to such dynamics DXY we saw a jump up the cost of a barrel of oil (+3,56%), gold (+1,54%), silver (+2,64%). Then there was the classic addiction “Buy the rumor, sell the fact”. That is, the financial markets were ready to accept the Fed decision, because the event actively sold out the American dollar.
For energy market more dependent on the event there is no. Only the influence of changes in the foreign exchange market. Further, based on the classical influences, the market will continue to account for the volumes of crude oil, world stocks, and demand from the consumer that will depend on the pace of the global economy. In the spring of 2018, the highest price will mark 70-71 per barrel. So, we remember the record-high oil production in the US, which means as soon as the market will let go of the story of the Federal Reserve, will return to sellers with the aim of reducing the rates to$ 62 a barrel.
In the future, on the second or third quarters of the cost of a barrel of oil will be under pressure, but without extreme drawdowns. The market is already prepared for the fact that production growth will be about 2 million barrels a day in 2018, and will continue the dynamics in 2019.
OOO “Expert plus”