The price of oil is trying to hold above 65$, but could fall below
Stock Markets Group – oil Prices failed to overcome the mark of $ 66 per barrel, and returned to the level of yesterday’s opening.
The strengthening of the oil price, which has been observed previously was caused by the dollar sales in the foreign exchange market after trump gave a reason to start “trade wars” between the US and Europe.
However, later it became known that Gary Cohn, the US presidential Advisor on economy, resigned, expressing his disagreement with the policies of the President, and the introduction of duties on import of steel and aluminum. This greatly changed the direction of commodity markets, and oil price began to fall again.
Thus, the may futures price of Brent crude oil on the new York stock exchange, fell to 65.5$ per barrel.
The API report, which was released later in the United States even more worried investors. The data, which was published, pointed to the sharp growth of oil reserves in us stores last week to 5.6 million barrels. Today it is expected that the Ministry of energy will publish their “numbers”, but already this morning, oil prices remain subdued, as traders prepare for strong sales, if the report will show the growth of oil production, together with increased reserves.
Experts say that the economic policy of the United States in recent years is a concern, with the tough rhetoric trump can make major changes on commodity markets. Including may be affected and the rate of oil.
As you know, OPEC+ for the past two years trying to keep the price of oil from falling, but with each meeting agree, is becoming increasingly difficult, especially given the fall in world demand for “black gold”.
Also, oil prices are more dependent on oil shale extraction, which is only growing. This ultimately can lead to termination of the agreement between the members of the oil cartel in the short term, lower oil prices far below current levels.
Analyst of commodity markets,
Stock Markets Group™