The price of oil: risks from the US are saved

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Thanks to the revival of demand in the second half of the week the quotes of Brent managed to get in a good plus the results of last trading five-day week, gaining 3.8 percent. Prices reached highs of 7 February in the vicinity of the psychological mark of 67 due to a certain weakening of the dollar and improved sentiment on the financial markets of the world.
The impetus for the rebound of the quotes was an unexpected reduction of stocks of energy in the U.S., last week announced the Ministry of energy. It was also marked the symbolic decline, although the index remains at historic highs. In General, from the oil shale industry United States remain downside risks, who are trying to balance OPEC producers, led by Saudi Arabia, which continues to use verbal intervention to maintain the price in the IPO of its state oil company.
Locally on the behavior of the Brent affect sentiment on the dollar. The us currency mainly remains under pressure, although in recent years has been increasingly clear attempts at recovery that interferes with confident appreciation of the barrel. From this point of view for the commodity segment will be a major speech by the new head of the fed Jerome Powell before congressional committees on Tuesday. From his tone will depend on the overall dynamics of the dollar, which in turn can make adjustments to the attitude Brent.
From the technical point of view, the asset reached a significant barrier 67, a breakdown of which can confirm the closure of the quotations above resistance in the area of 67,30, where he slowed down the rise in prices in the morning in Asia. The next target on the way up – area of 67,70 RUB.
Michael Mashchenko,
Analyst social network for investors
eToro in Russia and the CIS