The price of oil: the Risk of a slowdown in the Chinese economy worries investors

  • And
  • +A

The price of Brent crude oil on Monday 17 June decreased relative to the previous close of 0.5% to 61.67 per barrel.
The market of “black gold” slightly moved away from concerns about disruptions of oil supplies through the Strait of Hormuz (after the recent attacks on tankers in the area).
Market players again evaluate the risks of lower demand for energy due to a slowdown in growth, particularly the Chinese economy. In may the volume of industrial production in China rose by 5% year on year, while experts predicted an increase of 5.4%.
Meanwhile, Russia in April for the fifth month in a row ranked second in the world in terms of oil production, overtaking Saudi Arabia and behind US, praised the “Joint initiative on oil statistics” (JODI).
United States in April produced an average of 12.2 million barrels of oil per day (+ 2,5%), Russia – 10,598 million (-0,08%), Saudi Arabia – 9,807 million (+0.2 percent).
Leaders in oil export in April: Saudi Arabia – 7,177 million barrels per day (+0,5%), Russia – 5,624 million barrels in March (April data is not), the Iraq – 3,858 million barrels per day (+0,5%). U.S. April exports down by 7% to 2,495 million barrels per day.
In the processing, the US has no equal – it increased in April by 2.5% to 16,339 million barrels per day. Russia reduced the rate by 3.4% to 5,438 million barrels, Saudi Arabia has advanced 4.3% to 2,598 million barrels per day.
The Euro against the dollar stabiliziruemost below $ 1,125. Investors are waiting in front of the decision and a review of the U.S. Federal reserve monetary policy later this week. We expect the regulator base interest rate at its current level of 2.25-2.5% per annum. The rate reduction is possible in July at the background of deterioration in the global economy, experts say.
To 16.16 GMT the Euro exchange rate has not changed since the start of trading on the last fixing and was 1,1236 dollar.
Western European stock indexes Monday afternoon changed multidirectional within 0.2% from the start of trading. Investors, in addition to waiting for the decisions of the fed, paid attention to corporate news.
Deutsche Bank has announced plans to create bad Bank assets amount to 50 billion euros for management or sale. At the same time, the German airline Lufthansa lowered its forecast for net profit margin before interest and taxes (EBIT) in the current year to 5.5 to 6.5%, below the previous estimate of 6.5-8%.
Valery Polkhovsky,
Financial scout,
Forex Club