The price of oil: Level 67 dollars again were not in the teeth
On Monday a barrel of Brent once again tried to break through the 100-day moving average, which acted as the local resistance, who sent quotes to the daily lows around $ 66 a barrel. Thus, the level of 67 dollars again proved too tough for the buyers in the commodity segment.
Market participants were disappointed with the improvement in weather conditions in the Gulf of Mexico, where the company has already begun to resume production after a short outage due to the storm. Against this background, market participants are subtracted from the prices the risk premium inherent last week. Against growth of quotations played data from China, where the economy grew the lowest in the last 27 years pace, raising concerns about cooling demand from the world’s largest consumer of energy.
Broader picture of the market speaks in favor of at least limited downside risks. The role of the bullish factors are the expectations of policy easing by global Central Banks led by the fed, the reduction of reserves and drilling activity in the United States, as well as the weakening of the dollar. But due to fears of weakening world demand, these factors may not have a full-fledged market support because of what Brent is stuck in the traded range, the output of which will be possible when outweigh those or other signals.
In the short term the oil market will have to wait for fresh statistics on stocks of crude oil in the USA, and also will pay attention to data on U.S. inflation, which can put pressure on the dollar and give a positive impetus to the local rates. The immediate resistance is still presented in the form of a mark of 67 dollars per barrel. Followed by the 100-day moving average, which now runs in the area of 67,50.
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