Oil price shows some gains but requires extra driver

Posted 11 January, 2019

Prices for Brent oil neither soared nor collapsed yesterday. Meanwhile, the Friday trading was marked by some upturn of oil quotes, which means that the market wants to keep recovering after the massive selloffs observed in late 2018.

According to the market analysts, oil is getting support from the oversold positions that appeared on aggressive liquidation of longs as well as the greenback fluctuations. The latter is still trying to regain positions, which looks quite attractive for the sellers, though it is getting clear now that the sentiments towards the dollar change due to the political tensions and softer stance of the US Fed.

This week, large support to prices came from Saudi Arabia, which announced upward revision of the prices for all oil brands to be exported to the USA. Moreover, quotes of brands for the Asian region also went up.

The Brent oil, in its turn, has been posting stronger positions for the second week. The price has hiked by some 7% over the week and hit new highs coming to the $62 handle. At the same time, the level of $62 is considered as the next obstacle for the market bulls. For now, further price upturn seems to need extra driver since the increase is losing the pace, as the market analysts noted. At the same time, some profit-taking is possible especially ahead of the weekend.
 

Previous forecast

15 January, 2019 18:13

← Euro loses grounds Tuesday, Brexit vote prospects vague

The euro started sliding vs the US dollar in the course of Tuesday. The current rate stands at some 1.1428. In general, such development is more likely market adjustments amid the lack of economic reports. The Brexit vote is the milestone of today's European trading session, which is in the spotlight now. The UK will decide on its further political way today. Some MPs refuse to support the draft agreement, which can mean unexpected results after the vote and even some slowdown in the Brexit.

Euro loses grounds Tuesday, Brexit vote prospects vague

Next forecast

09 January, 2019 14:00

Prices for oil remain on rise →

Following a short-term break on Monday, oil prices have resumed strengthening by now. Brent oil managed not only to maintain positions above $57/bbl but even gained grounds reaching $59.80 on Wednesday. Thus, the price is coming closer to the psychological level of $60. API posted a decline in the US crude oil reserves. The volumes reportedly dipped by 6 million bbl per day, which 2-fold above the expected level. 

Prices for oil remain on rise
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