The rate of oil reduced losses, but until proper growth is far

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On Thursday, oil prices failed to shake off the negativity that had enveloped the world’s financial markets. Brent has violated the integrity level of $ 58 per barrel, while in the second half of the day partially reduced. Thanks to the recent one-day rally this week futures will conclude with minor changes, of course, if in the course of today’s trading will not happen any sudden movements.
Oil prices continue to focus on external events, where the attention of investors focused on the trade war on the United States and China, the situation in the debt markets, the dynamics of the Renminbi and the Hong Kong protests. All these factors contribute to the growth of anxiety among investors, in connection with the global platforms prevails, risk aversion, and attempts recovery of risky assets are replaced by sales. It is not surprising that in the current environment, Brent is experiencing difficulties with a more or less steady strengthening.
Local negative was added by the strengthening of the dollar in response to unexpectedly strong data on retail sales in the U.S., which weakened the probability of a rate cut, the fed amid prospects of runaway inflation.
In the short term quotes with a high probability will remain under the mark of 60 dollars per barrel. At the end of the weeks trading activity in commodity segment can be reduced, resulting in a closer range. Today traders will pay attention to the monthly report of OPEC, and if the assessment of the prospects of supply and demand will be pessimistic, prices may accelerate the decline, especially against the threats of a new round of escalation of the trade conflict yesterday after Beijing threatened Washington response.
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Gennady Nikolaev
Expert
Academy of management Finance and investment