The rate of oil focuses on the actions of the US against China
At the end of trading on Thursday Brent found the strength to return to positive territory and closed in the area of 68,50. Extinction of escape from the risks brought temporary relief in the commodity segment, which also had to put up with the strengthening of the dollar. But already at the start of today’s trading, the situation changed quotes black gold opened gap down and traded again below the level 68.
A new wave of avoidance of risks, which covered the oil market, raised the trump, who spoke on the consideration of the imposition of tariffs on Chinese goods another 100 billion dollars. After a brief lull it was another blow to the markets, which has renewed concern about fomenting a trade war. Given that the PRC is serious and repeatedly expressed a willingness for this confrontation, after some time, Beijing may announce another response, which creates additional negative for risk assets.
The theme of the trade conflict came to the fore not only in stock markets but also commodity markets, the sentiment is this week conducting Washington and Beijing. So, while the degree of tension between the two powers will not subside, as the escalation of the conflict growing fears about the health of the global economy and energy demand from China, the largest consumer in the world.
From a technical point of view of Brent, it is important to hold above interim support 67,30 in the short term so as not to lose the level 67 and go back to 2 week lows. Given what’s happening in the markets, the probability of steady returns above 68 now small.
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