The price of oil under pressure from dollar buyers
Despite a General improvement in attitudes to risk, oil prices are unable to return to growth in the trading session yesterday, after the aggressive collapse at the end of the week. Brent, which unsuccessfully tried to settle above the level of $ 59 per barrel, barely hold above $ 58, although by the end of the day reduced losses.
On Sunday, entered into force a new mutual tariffs from the US and China. For investors, this news was not unexpected, but still a manifestation of optimism kept. In the commodity segment further exchange of duties increases the uncertainty about the prospects of energy demand.
An additional factor that has held back attempts by oil bulls, was the strong dollar, which sent the Euro to fresh 2-year lows and continues to prevail over the main competitors, relying on strong data on the labor market and support from representatives of the Federal reserve.
Also, players have upset the study, which pointed to the growth in OPEC production in August for the first time since the beginning of the year. For the fragile market it is especially important to see a high level of compliance with the quotas agreed under the deal, OPEC+, and signs of deterioration of discipline is not pleasing to players.
In the short term, Brent can undertake new attempts to resume the rise, but if the dollar does not go to the correction or the trade front will not come positive news, futures will continue to be sold on growth, and the threat of the next test the level of 58 dollars per barrel will be maintained.
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