The price of Brent crude oil lost more than 2%, investors wary
Last week, Brent lost more than 2%, showing a fairly aggressive decline on Friday. Quotes finished slightly above level 60 and Monday trying to determine the vector of further movement, frozen in indecision.
It is noteworthy that the market has not responded to new signs of a slowdown of activity in the shale deposits of the United States. So, after cutting on 10 units in the previous week (maximum from April 2016) last week the number of drilling rigs in the country decreased by 4, reaching the lowest since mid-October, the value 873. And production, meanwhile, declined from a record high to 11.6 million barrels a day.
The main reason for slowing activity growth – the cost of production in the United States, which since the beginning of the year increased by 13% and will probably continue to grow. However, until the market responds to bullish signals on this front, focusing on suspicious transaction OPEC+ and the threat of a global economic slowdown. The second factor inhibiting the expression of interest to risky assets in General, the receipt of negative signals from the economic statistics.
This week the commodity segment will continue to monitor the General mood of investors, the dynamics of the dollar has grown well on Friday and put additional pressure on oil prices, as well as the statistics from the States – a large-scale reduction of stocks of crude oil and a further decline in production will be able to provide some support to Brent in the absence of economic shocks.
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