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%.
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