According to experts, this week was the most disastrous for the black gold market in the last six months. Attempts to restore it on Friday, May 24, do not give a special result, although they can help avoid strong subsidence.
Oil prices are trying to go "to the kings" after the collapse the day before. The cost of Brent increased by 0.87% to $68.57 per barrel. The price of WTI light oil rose 0.74% to $58.63 per barrel.
The end of this week brought the oil quotes the most significant drop since January 2019. According to analysts, pressure on oil prices was exerted by such factors as the fear of a slowdown in the world economy and the growth of black gold reserves in the US to the highs since July 2017.
Analyzing the incoming data on the oil market, experts record the rise in prices for short-term contracts. Experts come to the conclusion that such a picture is typical for a situation when the current production and sale of oil is more profitable than its storage and sale after a certain period of time.
At the moment, market participants are following the actions of the two main figures in the trade conflict, the United States and China. They pay special attention to the degree of tension in relations between the two powers, believing that this confrontation will reduce the demand for black gold.
At the end of this week, the margin of oil refineries in Asia (refineries) fell to its lowest level in ten years, experts say. Analysts fear that the trade conflict between the US and China will lead to a further collapse of oil prices, which is difficult to stop. Unfortunately, the "snowball" effect has not been canceled.
According to experts of the analytical company London Capital Group, if Washington and Beijing do not come to a compromise in the near future, then a further rally in oil prices will be questionable.
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