The price of oil waiting for when the US and China agree

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In January, the oil market has shown itself more than worthy. Decent prices rose, despite the never-ending fears about the slowing global economy and China in particular, a new round of shale gas revolution, trade tensions in the world, etc. as opposed to negative measures were made by OPEC, trump sanctions against Iran, and now Venezuela, and the lack of haste with the fed rate hike.
On the eve of Brent once again ran into resistance around 62, close above which quotations do this by January 22. In the end, the barrel was closed in negative territory and has a slightly downside bias on Friday.
Starting from 10 January the price growth has stalled. Since then the prices have settled in a modest range within which undertake the futile attempts of growth. The market lacks momentum despite recent destocking in the United States. The reason is that the players are now focused on the prospects of demand, which directly depend on the health of the global economy and especially China.
By the way, data released today showed that Chinese manufacturing PMI fell to Caixin in January from 49.7 to 48.3 against the forecast of 49.6, reaching its lowest in nearly three years level. In the short term, this factor will continue to deter buyers, but positive news from the trade front is able to get the prices back to growth, albeit modest.
It is reported that the Chinese side appreciates the talks with the United States substantive and fruitful, while Washington announced the imminent resumption of negotiations, after 5 Feb.
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Michael Mashchenko,
Analyst social network for investors
eToro in Russia and the CIS