The rate of oil for half of the year reached a local maxima
Over the past six weeks oil prices rose to local peaks in expectations of a prolonged decline in output. The appointment of Prince Abdulaziz bin Salman as the new Minister of energy of Saudi Arabia had a positive impact on oil prices as the OPEC Alliance+, consisting of OPEC and producers outside the organization of the countries will exist in the long term.
On the other hand, one of the main priorities now is a phased public float of Saudi Aramco.
Appointment of a member of the Royal family to the position of Minister of energy, probably, is an attempt to provide greater control and consistency of policies while making important strategic decisions.
Major market participants realized that the OPEC countries can not undertake anything more against the overproduction of oil, despite a plan to reduce production. Fill US shale oil the Western hemisphere, while on the East there is a shortage of black gold. This is what formed the imbalance to mind when it comes to the estimation of the world demand and supply.
The possible reduction in basic interest rates, the fed will partially reflect the negative effect of trade wars. Some participants will be able to positively look at the commodity market. On the other hand, the oil market at the mercy of speculative component, which is based on geopolitical news and published data from leading energy agencies of the United States.
Today, the American petroleum Institute will report on weekly inventories, which will help you understand what to expect from tomorrow’s publication of data from the news Agency of energy of the USA. It is projected that crude oil inventories in the us can be increased, which however has a negative impact on the economy. But as energy Department sometimes surprises, to expect anything. This will be the reaction of the market. Given that OPEC countries are hoping to further stabilize the market, reports oil reserves will be partially offset by the positive expectations. In this regard, the price of Brent crude oil could rise to $63,50 per barrel, while the price of WTI to $59 per barrel.
“International financial center”