The price of oil recovers, but can’t go above $ 70

  • And
  • +A

Oil prices gradually began to recover. Many major market participants assessed the impact of US sanctions against Iran and the situation around the Chinese-American trade front. WTI futures added 0.8% to $61,88 at 05:19 GMT. International Brent crude climbed 0.6% to $70,26.
Investors are carefully watching the situation in Iran since the U.S. tightened sanctions. Despite today’s rise, oil prices are still under pressure – trade negotiations, China and the US can be broken because of Donald trump. He announced plans to increase existing tariffs on imports from China, which is estimated at $200 billion.
Vice-Premier of the state Council of the PRC Liu he goes to Washington to hold talks Thursday and Friday. They will also attend U.S. trade representative Robert Lighthizer and Minister of Finance Steven Mnuchin. It is unlikely that this week the deal can make. Now, when rates are planning to increase the parties need more time to come to a consensus.
In fact, the fundamental perspectives that support global oil prices has not disappeared. Production cuts from OPEC countries+ since the beginning of the year, as well as sanctions against Iran and Venezuela are the underlying force that supports the oil market.
Given the complex of factors of influence on the global oil market, we can fix in the short term, prices range from $68,00 up to $72,00 per barrel. On Friday, oil prices can get extra pressure if Donald trump still impose tariffs on goods from China.
__________________
Gaidar Hasanov
Expert
“International financial center”