Ruble: Trade wars do not give rest to investors
A protracted trade war between the US and China with various new scenarios and branches of exerting serious pressure on the oil market. The OPEC countries sought to find a middle ground in the designation of a quota for the stabilization of the global market, but the unpredictability of trump was not taken into account when adopting measures to reduce oil production. Market participants also ignored the tense situation in the middle East, despite the fact that the situation in the Persian Gulf remains volatile.
The only thing that worries investors – how long will a trade war and what OPEC will do at its next meeting, which will take place on 5 December. They need to figure out how to stabilize the oil market and to expand it to increase.
Now, oil prices traded at around $60.00 per barrel, which is less than the budgeted Saudi Arabia. If the situation continues, it is possible that OPEC will hold an extraordinary meeting to review the quotas of oil production decline by at least 1.8 barrels per day.
It is clear that market share will have to pay US, but here is the question of quality. Of course, America will once again unleashes a flurry of claims for the cartel, accusing him of manipulating prices for black gold. But by and large that the US is the leading manipulator of world financial and commodity markets.
At the moment, in a global sense in the oil market, nothing has changed. Participants will respond to the publication of data on weekly oil inventories from the American petroleum Institute (API). But to expect cardinal changes is not worth it. The price of Brent crude can decline further to $58,92 per barrel and shale oil WTI will trade in the range of $53,40 – 55,50 per barrel.
“International financial center”