The oil helps the ruble, and draws attention to the strong dollar
Saudi Arabia’s king Salman bin Abdul-Aziz dismissed the energy Minister Khalid al-falikha, who held this office in may 2016, replacing him with his son Prince Abdul Aziz bin Salman, who served as Vice-Minister of energy April 2017. Royal decree about the dismissal of al-falikha and the appointment of Abdul Aziz bin Salman, the Minister of energy was published by the state news Agency SPA late on Saturday evening.
The official reason for dismissal was not, though, considering the approach of the “monitoring Committee” OPEC in Abu Dhabi 12 September, to understand them easily. There is an alternative view that the Salman and al-falih did not agree on the upcoming IPO of Saudi Aramco, but what dominates is the first version. The chair under al-Valicom staggered earlier last week after his role in the supervision of industrial development was transferred to the newly established Ministry and was replaced as Chairman of the Board of Directors of state-run Saudi Aramco Manager of the sovereign Fund, Yasser al-Rumian close economic aide of the crown Prince. Based on the news, a barrel of Brent crude oil jumped to $62,00 (as of 12:30 GMT), a short climbing to its highest since late July at $of 62.27 per barrel.
Meanwhile, the morning news is more and more evidence is negative for the US economy the effects too much stronger dollar amid trade wars – two components are truly “hellish symbiosis.” So, contrary to predictions at the level of +12.9 billion euros, Germany’s trade balance in July rose sharply to 21.4 billion Euro compared to 16.8 billion euros in the previous period. The dollar index DXY as of 12:30 GMT continues to maintain a high level 98,34, but on Friday a short time managed to “fight” for the level 99. Looks like Donald trump has another reason to think about “eternal” and to write a meaningful tweet.
From domestic news this morning draws attention to the message that, according to General administration of customs of China, the trade turnover between Russia and China for 8 months in 2019 increased by 4.5% compared to the same period of 2018 made up 70.59 billion. Exports from China to Russia in January-August of 2019 was on the same level as in the same period last year, amounting to 31,14 billion dollars, but the Chinese imports from Russia grew by a very impressive 8.3% to 39,45 billion. This is a small additional positive for the ruble in addition to oil prices.
The ruble this morning pretty much entrenched on the rebound of a barrel of Brent to the level 65,52 per dollar (as of 11:30 GMT) – the highest level since August 12. Friday’s meeting of the Central Bank of the Russian Federation on which the last anticipated lowered interest rate by 0.25 percentage points to 7.00%, it was not for anybody a surprise, as the main points to explain this decision. Central Bank of the Russian Federation carries out systematic “transition to a neutral monetary policy.” But for the ruble is now to the fore once again pushed the situation on the global oil market.
In tandem with the Euro, the ruble also strengthened: the level 72,26 rubles for a single unit already at 1.12% better compared with Friday’s discovery. The Euro has its own internal stimulus – the same story with the “hard Brexit’om”, which hurts and British pound.
“International financial center”