The rate of oil is oriented on the dollar
After unsuccessful attempts to develop bullish momentum after four days of sustained rise, Brent oil moderately fell at auction on Thursday, failing to defend the psychological mark 60 dollars per barrel, around which now unfold the main technical events. In a supporting role at this stage is the region $ 59. In early trading Friday quotes is situated in the flat with bated breath in anticipation of Powell’s speech.
In the oil market continues to be dominated by bearish factors. This is evidenced by limited growth potential and the tendency of players to sales trying to renew the local maxima. In the light of increased commercial uncertainty, the dynamics of bond yields, a strong dollar and the devaluation of the Renminbi is, in fact, is not surprising. The basic tone of the raw sites are now asking all of these global factors, whereas the branch signals faded into the background.
Market participants hope for a weakening of the dollar in response to today’s speech of the fed. But Powell may disappoint USD bears and refrain from severe soft rhetoric that will only strengthen positions of American currency and will increase pressure on Brent.
As the end of the day and early next week, the world markets, including oil, will respond to the speech of the head of the Central Bank, the current report of Baker Hughes on the number of active drilling rigs in the United States can remain unnoticed, especially if the index will be negligible. In the case of the scenario with the strengthening dollar risks Brent to finish a week under the mark of $ 59. ______________________
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