The oil price has fallen by harsh rhetoric trump
On the eve of the oil price updated 3-week lows around 57,22, where the dollar rebounded 100 points, cutting intraday losses. In early deals on Wednesday, the pressure on Brent crude continues to retreat – the futures are trading in positive territory, testing the intermediate resistance in the area between 58.50.
Attack of sales was associated with signs of a new aggravation of the trade war, when trump advised Beijing not to delay and not to wait for his re-election in 2020, after which bargains will be much tougher. Oil was added to the fire data from the US, where the ISM manufacturing sector went into contraction zone, breaking the threshold of 50 points. The report reinforced fears of a recession in the United States, however, pressured the dollar, which later played into the hands of the oil market.
The current recovery quotes still looks fragile and uncertain. Chinese statistics have indicated growth in business activity in the services sector, supporting the interest risk at the local level. In addition to signals from the trading front, the market will follow the tone of the statements of several representatives of the fed, and if their rhetoric will not be enough “soft” dollar strength back and Brent is forced to interrupt overtures to the North.
Also, the market will have to wait for the industry statistics report API and the US Department of energy today and tomorrow respectively.
The publication was shifted to the afternoon because of the recent celebration of labor Day in the United States. From a technical point of view, Brent remains vulnerable while trading below the region 60,60 dollars per barrel, a close above which will be required to confirm the breakout of the level of 60 dollars in the case of the bullish momentum in the market.
Academy of management Finance and investment