Oil quotes are rising steadily while the market displays weak volatility. Traders are acting less cautious amid positive news about the trade negotiations. Investors also expect to see the a decline in the US crude inventories for the previous week. The ruble is trying to hold near the yearly highs.
Today, optimistic comments about the US-China trade deal serve as the main drivers for the market amid a relatively calm trading week. Moderate demand for risk assets is keeping the Brent quotes above the level of 65 dollars per barrel. Positive economic data, showing an improving situation in China, provides additional support for the oil prices.
The benchmark crude oil ended yesterday’s session with small gains. Today, Brent has slightly advanced by 0.02%. Brent crude is currently trading at 65 dollars 40 cents a barrel. West Texas Intermediate crude is following the same upward trend gaining 0.05%. On Tuesday, a barrel of WTI oil costs 60 dollars 18 cents. Brent buyers have almost reached the important level of 66 dollars per barrel. If the price passes this mark, 68 dollars per barrel will become its next goal.
Oil traders will have to keep the prices above the mark of 65 dollars per barrel until the official report on US crude inventories from the US Department of Energy is released. A reduction in oil stockpiles may trigger another oil’s rally. Meanwhile, oil output in the US is expected to rise by 30,000 barrels. Today, market participants will await preliminary data release from the American Petroleum Institute. The crude oil inventories are expected to decline by 1.7 million barrels. Such a scenario may slightly support oil quotes in the absence of other significant drivers.
The Russian currency is trading firmly high against the US dollar. On Tuesday, the dollar/ruble pair has settled at the level of 62.53. The pair is likely to trade within this range as the overall background remains stable. Optimistic sentiment has been prevailing in the market since early December. The currencies of the emerging markets have gained on average 2.6%, including the ruble. The Russian currency is being supported by high oil prices, increased risk appetite, and the approaching tax period.
Major players on Moscow Exchange, holding 45% of all contracts, are keeping the long positions on the ruble. If they continue to keep the positions open, this will indicate that investors expect the ruble to strengthen further.
FX Analytics –
Forex Calendar –
Forex TV from InstaForex –
Forex charts –
Instant account opening –
Forex Trading Contests –
List of official InstaForex blogs:
#commodity_market #oil #instaforex_tv