The oil Price is unstable because of the sanctions against Iran
Volatility in the oil market due to the factor of sanctions against Iran in the near future will be high. Yesterday after publishing a powerful article in Foreign Policy from the striking headline “Punishing Iran, trump weakens America,” which criticized Donald trump for the spontaneity of its anti-Iran sanctions, there were rumours that a complete embargo would not take place, and WTI began to noticeably downfall. However, North sea Brent, for all these intricacies, prefer to close their eyes and continued slow strengthening to $75,34/bbl as of 12:15 GMT.
However, the first step is the hardest – the history of destabilization of oil prices has not been exhausted only one Iran. Came to parascript slightly forgotten the Libyan issue.
According to Bloomberg, discouraging way trump “blessed” in his phone call last week, the leader of the Libyan rebels, known as the Libyan national army, Khalifa the Haftarot for the attack on the capital to overthrow the current government, whose transitional status, according to some, was too long. Later, in a similar vein, with Haftarot allegedly communicated and the national security Advisor of the White house, John Bolton. Again, all this is publicly posted on the news portal Bloomberg, and we have no comment on the veracity of this information.
Meanwhile, aside from external hard geopolitics, the Finance Ministry yesterday held a very successful (but as they say, “without strain”) placement of two tranches of OFZ – series 26227 and 26228. It seems that the Finance Ministry managed to further reduce the market premium rate of return, according to the universal decline of passion about the imminent sanctions in the financial sector. The average price on Wednesday auction on placing In the case of OFZ-PD series 26227 maturing July 17, 2024 it was 8.13%. Total has sold securities amounting to just more than 54 billion rubles, with demand more than 91 billion rubles.
In turn, profitability on cut off price on placement of OFZ-PD series 26228 maturing April 10, 2030 was 8.4%. Total has sold securities for a total amount of 4.6 billion rubles, with demand for almost 40 billion roubles.
Today, the ruble continued its correction on the news about a rethink of sanctions against Iran and a continued major purchases of foreign currency by the Central Bank. There is talk about a certain geopolitical weakening factor associated with Ukraine – as we warned you last winter, but in this case, we do not share too much fear. In tandem with the dollar as of 12:30 GMT the domestic currency is trading at 64,79. In tandem with the Euro it reached the level of 72.17. If this thing goes on, already before the may holidays it will be possible to tell with confidence that the bullish trend in the ruble turned out to be another false start.
________________________ Vladimir Rojankovski,
“International financial center”