Russia is lucky again: the fall of the dollar played into her hands
Today, world oil prices have risen markedly: if we take crisis December 2014 as the starting point, then we have to admit: trading on standard brands is at maximum prices.
The catalyst for price growth was the decline in oil reserves in the United States, recorded last week, Interfax reports. For example, March futures for the Brent variety on the London ICE Futures exchange soared in the morning at $ 0,45 (up to $ 70,98 per barrel). The growth was also noted yesterday: the price of futures rose by $ 0,57 (up to $ 70,53 per barrel).
This, we note, is an exchange prelude to a further increase in oil prices. Recall that the Brent variety serves as the basis for pricing Russian oil.
On the eve of the report of the US Department of Energy, it became known about a stable decline in oil reserves in the country. Just last week, they fell 1,07 million barrels. This decline has been observed for the tenth week in a row.
However, you should not conclude that only this factor became decisive. The OPEC + agreement and the weakening of the US dollar also “dropped” oil in price. This conclusion is desired by foreign analysts.
According to Reuters, the OPEC + oil production reduction deal supports high global commodity prices. It is also reported that at the World Economic Forum, Russian Minister of Energy A. Novak and the head of the Ministry of Energy of Saudi Arabia Khalid al-Falih discussed a number of joint projects of the two states. Greg McKenna, AxiTrader's market specialist, believes that the key factors affecting the oil market were precisely the dialogue between Riyadh and Moscow and the cheapening of the dollar. Of course, the decline in oil reserves in the United States also played a role.
Andrei Shenk, an analyst with Otkritie Private Banking, discovered yet another reason for the notable rise in black gold quotes: protests in Iran. Yes, the government neutralized these protests quickly, the analyst on the Vesti.Economy”, However, the performances of the masses made a strong impression on investors. The fact is that after opposition activity in Iraq, Libya, Egypt, Tunisia, Syria, any activity of protesters in the Middle East is considered a threat to the stability of the region and unhindered oil production.
As for the US dollar, it collapsed to a three-year low against major world currencies. This was partly contributed not by anyone, but by the US Treasury Secretary Stephen Mnuchin, who in his speech at the World Economic Forum said that the United States benefits from a weak dollar. According to him, "a weakening dollar is good for us [for the United States], because it favors both trade and opportunities."
As a result, we note that favorable prerequisites are forming for a further increase in oil prices. In fact, Russia was lucky again: a price above seventy dollars per barrel can in no way be considered low. Against the backdrop of Western sanctions and the slow growth of the economy, oil help will be a good boost to the federal budget.
Photos used: https://tengrinews.kz
The catalyst for price growth was the decline in oil reserves in the United States, recorded last week, Interfax reports. For example, March futures for the Brent variety on the London ICE Futures exchange soared in the morning at $ 0,45 (up to $ 70,98 per barrel). The growth was also noted yesterday: the price of futures rose by $ 0,57 (up to $ 70,53 per barrel).
This, we note, is an exchange prelude to a further increase in oil prices. Recall that the Brent variety serves as the basis for pricing Russian oil.
On the eve of the report of the US Department of Energy, it became known about a stable decline in oil reserves in the country. Just last week, they fell 1,07 million barrels. This decline has been observed for the tenth week in a row.
However, you should not conclude that only this factor became decisive. The OPEC + agreement and the weakening of the US dollar also “dropped” oil in price. This conclusion is desired by foreign analysts.
According to Reuters, the OPEC + oil production reduction deal supports high global commodity prices. It is also reported that at the World Economic Forum, Russian Minister of Energy A. Novak and the head of the Ministry of Energy of Saudi Arabia Khalid al-Falih discussed a number of joint projects of the two states. Greg McKenna, AxiTrader's market specialist, believes that the key factors affecting the oil market were precisely the dialogue between Riyadh and Moscow and the cheapening of the dollar. Of course, the decline in oil reserves in the United States also played a role.
Andrei Shenk, an analyst with Otkritie Private Banking, discovered yet another reason for the notable rise in black gold quotes: protests in Iran. Yes, the government neutralized these protests quickly, the analyst on the Vesti.Economy”, However, the performances of the masses made a strong impression on investors. The fact is that after opposition activity in Iraq, Libya, Egypt, Tunisia, Syria, any activity of protesters in the Middle East is considered a threat to the stability of the region and unhindered oil production.
As for the US dollar, it collapsed to a three-year low against major world currencies. This was partly contributed not by anyone, but by the US Treasury Secretary Stephen Mnuchin, who in his speech at the World Economic Forum said that the United States benefits from a weak dollar. According to him, "a weakening dollar is good for us [for the United States], because it favors both trade and opportunities."
As a result, we note that favorable prerequisites are forming for a further increase in oil prices. In fact, Russia was lucky again: a price above seventy dollars per barrel can in no way be considered low. Against the backdrop of Western sanctions and the slow growth of the economy, oil help will be a good boost to the federal budget.
Photos used: https://tengrinews.kz
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