Oil received another blow from the US government
After the United States said it will impose import duties on Mexican goods, creates another threat of reducing economic development of many countries. The reason for this decision was connected with the flow of illegal migrants from Mexico. The global oil market is already in limbo, and new fears of market participants has further exacerbated the situation.
The oil price yesterday fell by almost -5%, and today we continue to record lower cost. Because the United States will continue to impose duties for as long as the problem with illegal immigrants is not solved.
On the other hand, tensions in trade negotiations with China also putting pressure on prices. We must understand that major market participants are now trying to stay out of the market. Naturally, in the absence of demand for “black gold” price is falling. In this regard, the decline in trading volumes on the futures and commodity markets will continue.
Many are betting on the upcoming meeting of OPEC in Vienna, where the decision on the further strategy of the plan by the stability of the global oil market. The main objective of the cartel to prevent the decrease in oil prices below $ 60 per barrel.
As I mentioned earlier, comfortable prices to the exporting countries and the importers are the prices from 70 to 75 dollars per barrel. In the current market conditions when growing tensions about trade wars and General uncertainty of the economic situation in the world, bar price range of export will have to reduce.
China refusing to buy Iranian oil for fear of sanctions, will be forced to seek alternative sources, as well as other countries, such as Turkey and India. At the moment the situation with a hint of a shortage of oil, but it looks like fears of a global decline in demand than crude oil play an important role and exert pressure on prices.
In this regard, oil prices will continue to decline. Brent crude will fall to $64,15 per barrel $56,68 and shale WTI will drop to $54,20 per barrel in the short term.
“International financial center”