22.05.2019: Oil declines, but RUB remains firm (Brent, RUB, USD)
Oil quotes kept their positions yesterday as the market sentiment remained basically unchanged. The ruble continues resisting its rivals despite the increasing greenback and falling oil prices.
The Brent benchmark is gradually declining, it has reached $71.50 per barrel by the middle of today’s trading session. A breakout of the level of $71.9 per barrel amid a notable volume may be a sign of the further decrease to $70 per barrel. Therefore, the quote is likely to dip lower, especially considering the following events.
The news broke yesterday that OPEC allowed Ecuador to boost its oil production to 530 thousand barrels per day instead of 508 thousand barrels considered by its quota.
Meanwhile, tensions on the Middle East rise amid the US sanctions against Iran and the recent attacks on the region’s oil facilities. The United States accumulates its warships in the Persian Gulf. Some experts believe, it can be regarded as preparation for an armed conflict. Although, both the US and Iran state that they do not foresee any war coming.
Saudi Arabia’s Council of Ministers spoke for the stability of the global oil market and avoiding conflict in the Persian Gulf. According to its statement, the country will do its best to press down any war.
The American Petroleum Institute released its weekly report on Tuesday’s evening. It showed a sudden increase of 2.4 million barrels in the US oil stockpiles last week. The market did not appreciate this news. The report from the Energy Information Administration is due today. Its data is considered to be more accurate.
On the other hand, the Russian currency remains stable in spite of the weakening oil. Today it even firmed. The dollar/ruble pair was trading at 64.40-64.19 at the beginning of the session.
However, the ruble’s dynamic may change amid the current market risks. Traders are following the trade conflict between Washington and Beijing. Nevertheless, there is also some positive news for investors. The Chinese ambassador to the United States said that China was still ready to resume the trade talks, even though there were no meeting scheduled at that moment.
Today market players are going to see the minutes of the recent meeting of the Federal Open Market Committee and to hear the speech of the ECB president. We keep following the market developments. Stay with us!
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