The week started with a sharp drop in oil prices

  • And
  • +A

The beginning of the week brought a continuation of the decline in oil prices down, which began a few days earlier. Gusher, is seeking last week to $68.7 per barrel of Brent, seemingly exhausted, as if afraid of this unprecedented in the current year height. The quotes retreated to $66,4.
Such a departure from her down market is a natural technical movement to lock in profits of market participants after a sharp significant increase, and does not negate the uptrend. The reason for the decline is the worsening of the statistics on industrial production of the United States and business activity in the Eurozone. Investors take it as a sign of a possible slowdown of the global economy, reducing demand for raw materials. Negative on the oil market fueled the decline in the leading stock indices in the world on Friday and Monday. This also shows pessimism about economic growth.
However, after such a quick drop in a few days, quotes largely “worked” reduction factors and are at equilibrium levels. Moreover, according to the latest data, last week reduced the number of drilling rigs in the U.S. 9 units, may in the future reduce production in the United States. All these considerations of the market in aggregate is able to preserve 25 Mar prices in a small range of $66-67 per barrel.
________________
Mark Goykhman,
The head of group of analysts
OOO “CAFT” (Center Analytics and financial technology)