The ruble and oil are looking for a new per annum “bottom”
The ruble continues to retreat in tandem with the U.S. dollar and slightly adjusted in tandem with the European currency. The dollar traded at this time 68,53 RUB (+0,35%). The Euro is worth 78.24 a RUB (-0,1%). The Central Bank of the Russian Federation has set following rates of foreign currencies on the weekend and on Monday, December 24: 68,00 RUB per U.S. dollar (+63 cents) and RUB over 77,97 EUR (+4 kopeks).
The oil market remains in the doldrums. A barrel of North sea Brent crude oil is trading to the middle of the day at $53,25 in the daylight at least $52,92 is the “bottom” from August 31, 2017. The market is due to growth of volumes of shale production in the United States, which could then negate the massive efforts of OPEC countries and oil producers, who joined the agreement to limit the daily pumping of raw materials. While OPEC+ fights for the balancing market (not the most productive of ways, but nevertheless), States continue to increase production.
Against this background, the absence from China of new ideas to stimulate its economy pushing investors away from risk. If things go well, this quarter will be for the oil market the worst in four years.
It is obvious that the ruble is not able to withstand such a powerful raw negative. The main phase of weakening is usually in the beginning of the American session, so it’s possible that today will still be bursts of activity. The US dollar finished the Friday session at the range 68,30-of 69.00, the Euro will go for the weekend within 77,80-78,75 RUB.