20.05.2019: OPEC+ decision gets oil back to highs, while RUB stuck (BRENT, RUB, USD)
Oil quotes consolidated at their highs in the last day of the previous trading week. The Brent benchmark firmed above $72 per barrel amid the upcoming OPEC+ meeting.
OPEC+ countries intend to reach balance on the oil market, the outcome of their last meeting showed. The market sentiment improved as there were no offers to increase production quotas following the meeting results.
Brent crude futures are consolidating near $73 per barrel after the previous growth to its high of April 26. This positive dynamic may continue, especially considering favorable oil statistics from the United States that has been showing a decline in oil stockpiles during the last two weeks.
Oil rally provided support to commodity currencies and helped them to keep the investors’ focus. Thus, the dollar/rub pair moved to the ruble’s side on Friday despite the global geopolitical tensions. Donald Trump decided to introduce additional tariffs on Chinese goods worth $300 billion after the previous hike in the current tariffs to 25% from 10% that amounted to $200 billion. China has already announced its response. The Chinese tariffs on American goods will take effect from June 1.
Meanwhile, the Russian currency is expected to weaken today amid the escalating trade war of the two superpowers. The dollar/ruble pair is likely to move upwards to the range of 64.95-65.70.
This week is going to bring a lot of important macroeconomic reports. The eurozone’s GDP for the first quarter as well as Russia’s industrial production for April will be released on Wednesday. On Friday, the Russian Federation will publish its trade balance for March and employment rate for April.
In general, the market sentiment reflects investors’ concerns regarding trade talks between Washington and Beijing. Moreover, these concerns increased due to the statement made by the representative of China’s Commerce Ministry that the Chinese government found it meaningless for the US delegation to come to Beijing as the United States kept intensifying trade disputes between the two countries complicating the negotiations.
We will continue to follow the developments. Stay with us!
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