The rise in oil prices stayed at around 60$

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The price of oil on Friday 1 February by 14: 00 MSK increased by 0.2% to 60.97 dollars per barrel for Brent. “Black gold” remains “tied” to the psychologically important level of 60 dollars per barrel. Attempts to reach the level of $ 63, taken the day before, have failed so far.
The correction resulted in evidence of declining business activity index (PMI) in industry of China in January to 48.3 points from 49.7 points in November, while analysts had only expected a decline to 49.5 points.
At the same time, support to oil quotations is maintained. In particular, the Chinese Ministry of Commerce said that during the last round of talks on trade disputes with the United States on January 30-31, the parties have made important progress. Hope for a speedy resolution of the protracted trade conflict between the two largest economies in the world support the demand for energy, because it reduces the risks of deceleration of the world economy.
The development of the situation around Venezuela also fuels the price of oil. Losses from U.S. sanctions against PDVSA, the oil can reach up to 11 billion dollars a year due to the reduction of oil supplies. Also blocked the assets and interest of PDVSA in the U.S. jurisdiction of $ 7 billion.
Meanwhile, the U.S. oil company Anadarko Petroleum Corporation agreed to sell LNG from the Mozambique LNG project with trading “daughter” of the Chinese state Corporation China National Offshore Oil Corporation (CNOOC).
The pair Euro-dollar slightly adds to the increase in demand for risk. The hopes of reaching America and China trade agreements supported investors ‘ appetite for risky assets. By 1400 GMT, the Euro hovered around 1,1467 dollar vs last fixing at the level of 1,1447 dollar.
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Ivan Marchena,
Analyst
GK Forex Club