The rate of oil soared after a record decline in inventories in the United States
The American petroleum Institute reported yesterday on a significant reduction of oil reserves – the figure was higher than expected. It’s a little lowered fears of market saturation. But as we all know, this is only a temporary factor, and things can change.
Today, news Agency of energy of the USA will publish data on crude oil inventories in the United States. But given that yesterday the rates were too low, nothing new will happen. This will give more of a positive oil quotations. On the other hand, fundamental factors related to geopolitics and trade wars between the US and China kept markets on tenterhooks.
Large investors tend not to pay attention to temporary factors and are based on the baseline scenario. They also expect a more effective strategy for stabilizing the global oil market from OPEC countries. Based on the fact that on the world markets there is high volatility, investors have to withdraw funds from riskier assets and send them in the protective.
Oil has long been a political asset in the hands of Donald trump. OPEC countries will have to reconsider quotas for production cuts at least 1.8 million barrels a day, and it is better if the number will be 2 million barrels. This will give a positive impetus to the oil market and keep prices above $65 per barrel.
In the current environment, speculative part of the players of the commodity market will be based on the published data from the energy agencies of the United States. So today we will continue to see price increases to $60,58 per barrel for Brent crude and to $56,20 per barrel for shale oil WTI.
“International financial center”