Oil is trying to gain ground after two consecutive days of losses. However, the current economic background stops the quotes from moving higher.
The International Monetary Fund has provided a pessimistic outlook for the global economic growth and oil prices. The commodity prices are expected to fall in the next five years. Today, oil quotes manage to hold at the level of 60 dollars a barrel only due to such geopolitical factors as a record drop in oil production in Venezuela and drone attacks on Saudi Arabia’s oil facilities. Currently, there are no fundamental reasons for the oil to rise. According to IMF estimates, next year Brent price may drop below 60 dollars and in three years will probably reach 55 dollars per barrel.
Today, the Brent oil has slightly inched up to 59 dollars 1 cent. Oil prices still remain sensitive to trade wars and concerns about the global economic growth. Investors are also waiting for the report on the US crude inventories. Prices will probably stay under pressure as US crude stocks are expected to grow for the fifth straight week.
The ruble is still trading mixed as the traders’ sentiment remains unstable. It seems that the Russian currency buyers prefer to trade moderately amid the uncertain political background.
The dollar/ruble pair is currently trading at 64.38. The ruble may gain momentum on bond auctions from the Russia’ Ministry of Finance. Rising oil prices may also support the currency.
In the mid-week session, the dollar/ruble pair will most probably trade in the previously reached range. The quotes are unlikely to go above the level of 64.
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