20.12.2019: Will oil hit $67? (Brent, USD/RUB)


Prevailing positive sentiment in the market
helped Brent futures to break through the level of 66 dollars per barrel. Today, oil is trading near yesterday’s closing
level. Despite the mixed trade, oil prices have high
chances of growing for the third consecutive week. The Brent quotes rose by 0.08% early in the
session to 66 dollars 67 cents per barrel. Meanwhile, West Texas Intermediate is following
a downward trend. On Friday, the American crude was down by
0.11% and settled at 61 dollars 11 cents a barrel. The data showing a decrease in crude oil inventories
in the US continues to influence commodity prices. Besides, the progress in US-China trade deal
provides more optimism for the oil buyers. According to US Treasury Secretary Steven
Mnuchin, the phase one trade agreement between Washington and Beijing would be signed at
the beginning of January. Earlier, Donald Trump said that the two parties
were planning to start negotiations regarding the second phase of the agreement in the nearest
future. Hopes for improvement in the relationships
between the world’s two biggest economies encourage traders and keep the oil prices
steadily high. The next target for oil will probably be the
mark of 67 dollars 20 cents per barrel. However, this level is hard to reach, so some
correctional movements are highly possible. Brent crude is currently trading near the
upper boundary of the uptrend channel since early October. This means that it may be risky to open long
positions on oil. The Russian currency along with the oil is
trading flat this time. The dollar/ruble pair has settled at 62.48
early in the day. Trading in the narrow range is still relevant. If traders start closing unprofitable positions,
this may cause the pair to go beyond this range in the upward move. Later in the day, investors will focus on
the US GDP data for the third quarter. The ruble is trading at the highest levels
this year due to the progress in the US-China trade talks and increased interest in the
Russian assets. Against the US dollar, the ruble has advanced
by 11%. The Russian currency is supported by the peak
of the tax period, approaching on December 25. According to the Reuters forecast, the volume
of all December payments may exceed the payments in November
by 35%.

Leave a Reply

Your email address will not be published. Required fields are marked *