The rate of oil cannot return to the level of 65$
Eve Brent was trying to get rid of the yoke of the sellers and tried to get back above $ 65, but the strengthening of the dollar and the ubiquitous fear of the shale companies in the U.S., coupled with the ambiguous attitude to risk has not allowed quotations to return to growth. The maximum that could make the asset by the end of the day to return to their original positions under the above psychological mark.
The API report did not impress traders. Oil stocks fell, but only slightly, only 900 thousand barrels, and gasoline stocks rose 1.6 million barrels. However, stocks in Cushing and distillates dropped substantially, by 2.6 million and 3.5 million barrels, respectively. But given the continued growth in drilling activity, market participants fear that a further rise will reflect and mining is the main fear of the market today.
Under the influence of this fear, the market ignores the positive comments of the OPEC countries, which refer to long-term joint maintenance of prices, a more rapid return of the balance of supply and demand and the absence of a significant threat from shale producers in the States. Resource segment now goes from the words on the figures that point to a new wave of the shale revolution, and this prevents the full return of buyers to the market.
In the short term, Brent will continue to pick up signals from the dollar, which strengthened on yesterday’s fed minutes and in the morning continues to put pressure on the quotes of black gold. Also adjustments in the dynamics of prices can make today the official report of the US Department of energy’s reserves and production of energy. A new record in terms of production is able to increase pressure on the asset.
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