The oil price has appreciated by 2.13%, despite political risks

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The price of oil (June futures) to 14.56 MSK grew by 2.13% to 70.11 per barrel for Brent. The market of black gold is trading in significant advantage amid rising hopes for avoiding a trade war between the US and China.
The head of China XI Jinping at the opening of the annual Asian economic forum on the Chinese island of Hainan, has promised to reduce duties on import of cars into the country and take steps on opening Chinese markets to foreign companies. Investors took this step as an attempt by China to resolve trade dispute with the United States.
In addition, the worsening situation in Syria on the backdrop of allegations of U.S. chemical weapons attack Bashar Assad’s troops and not the exception in this responsibility of Russia, also fuels the demand for energy.
Despite the oil, the dollar and the Euro for the second day in a row breaking records for growth, updating the multi-month levels. On Tuesday, the dollar jumped to 63.95 ruble – highest since Dec of 2016, the Euro – up from 78.77 ruble – highest since April 2016.
Investors high risk of sanctions continued to close the ruble position in the folding of the carry trade and immediately go to the currency realizing pent-up demand for it. High trading volume in the stock and currency section of the Moscow exchange indicates continuing activity of the players, hedge currency risks.
To 14.48 GMT increased from the start of trading by 3.67% to of 62.88 ruble, Euro – by 4.11% to 77,77 of the ruble.
Until the end of the day, the U.S. currency will fluctuate in the range is 61.3-64.3 ruble, Euro – in the hallway one 75.7-79.9 ruble. It is hoped that the ruble tries to stabilize and begin correctional growth to the major reserve currencies. The price of oil in rubles has jumped to multi-year highs – in the area of 4400 rubles per barrel.
Ivan Marchena,
GK Forex Club