The Brent oil has fallen to a record 6%, when the growth?

  • And
  • +A

This week was a tough period for oil prices. After initial attempts of growth rate, which was limited to the 200-day moving average in the area of 65.40 dollars a barrel, in just a few hours, Brent fell by more than 6%, find the local bottom at $ 60. In early trading Friday quotes played 2% and is located near the level of $ 62.
Sentiment in the commodity segment already looked not the best way after the fed meeting that resulted in the widespread rally in the dollar and, accordingly, pressed for oil. But after the tweet trump, who has threatened to China’s import duties on the remaining goods prices accelerated the fall. The market of black gold is traditionally sensitive to signs of escalation of tensions between the two largest economies in the world, and in this case worked additionally, the effect of surprise, because just a day earlier, ended a round of trade talks, the sides assessed positively.
In any case, after the initial, overly emotional reaction, the market may stabilize, but will closely monitor any signals from the trading front. In the short term, another risk factor for Brent will be a potential strengthening of the dollar in the event of strong data on the U.S. labor market. Without realization of additional risks quotes needs to hold above 60 dollars in the short term.
_______________________
Gennady Nikolaev
Expert
Academy of management Finance and investment