The price of oil bounced back sharply to around $ 62 per barrel
After collapse to new multi-month lows in the first half of the day, the price of Brent crude has bounced sharply and almost reached the mark of $ 62 per barrel, while the finished lower region 61,50 USD. The quotes offset most of the losses incurred a day earlier.
The restoration of the futures seemed quite logical, given the overall rally in the segment of risky assets, triggered by two important drivers. First, the Federal Reserve, which recently demonstrated a dovish rhetoric, joined the ECB. In particular, Draghi indicated the likelihood of a rate cut in case of further deterioration of the economic situation in the region.
Second, trump tweeted about the upcoming meeting with his Chinese counterpart at the summit of “Big twenty” that gave investors hope for the resumption of negotiations and conclusion of commercial transactions. For oil traders improve on this front automatically assume the fading worries about cooling global demand for energy.
Meanwhile, the API report showed that last week crude oil inventories in the US decreased by 812 thousand barrels. This is below the forecast, which anticipated a fall in the reserves of 2 million barrels, but the numbers still did not spoil the mood of investors, which focus on the General trend of interest to risk and news trading front. Against this background, in the short term, Brent could continue with the repair attempts to undermine are able potentially bear the report of the energy and not enough dovish rhetoric of the fed.
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