World oil prices at the peak of growth

  • And
  • +A

In oil has received a powerful impetus to growth from several factors. Brent has exceeded a mark of 67 dollars per barrel, adding a day more than 3%. In the morning session on Thursday quotes continued to rise and, noting the highs of late may in the area 67,35, settled between the 100 – and 200-day moving averages, which formed the intersection in the last week of June.
A statement by the head of the fed is carried openly dovish in nature, which has strengthened investors in opinion that a rate cut at the end of July, it’s settled. On this background of sharply increased all risky assets, including oil, and the concurrent weakening of the dollar provided additional support to Brent. Meanwhile, the report of the energy Ministry pointed out the decline in crude oil inventories in the United States by as much as 9.5 million barrels per day, far above forecasts. Against this background, a new record for production levels have remained virtually unnoticed.
Helped market and tensions on the geopolitical front, which has risen after the tweet trump has threatened Iran with new sanctions. The icing on the cake of the pack of reports about the evacuation of oil rigs from the Gulf of Mexico due to the threat of tropical storm. Given the combination of these powerful factors, in the near future we can expect further rise of prices, however for a breakdown of the 100-day moving average will likely require additional catalyst.
Gennady Nikolaev
Academy of management Finance and investment