The price of oil: strengthen the “rumor” was short-lived
On Monday, oil prices continued to rise, although by the end of the day, fell back from fresh long-term highs in the area of 76.30 on Brent crude. C am asset konsolidiruyutsya with a slight downward slope, not daring again to attempt to level 76, which continues to play the role of the nearest resistance.
Short-term jump in prices was due to news on Iran. Yesterday evening it became known that trump will make a decision on the nuclear agreement today, while earlier it was expected that the verdict will be pronounced on Saturday, may 12.
After reaching new heights, the barrel immediately corrected down sharply and remains in the area of 75,50. There were reports that the leader of the White house pull out of the deal and re-impose sanctions against Tehran.
Talking about the market’s reaction to these conversations? Throughout the last month oil rose in price by shopping on the expectations of the trump. In other words, Brent was in demand “rumors”. And, it seems, before we saw something like a “rehearsal” of sales “facts” that can lead to a decent correction.
As expected, the us President will announce his verdict at 21.00 GMT., so, liquidity is reduced, and the market reaction may be very emotional. While the commodity segment will digest and analyze the decision, including sanctions, which are the center of attention, the statistics on stocks in the United States will have an indirect impact on Brent.
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