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Oil continues to grow; Brent is close to $ 80 per barrel

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Oil continues to grow; Brent is close to $ 80 per barrel
September 20
09:00 2018

On Thursday, oil prices are rising again. WTI has updated its two-month high and Brent has approached the level of $ 80  per barrel.

Brent futures for November (traded on ICE Futures in London) have risen by almost $ 0.3 to $ 79.69 per barrel. WTI futures for October (traded on NYMEX in New York) have increased by $ 0.58 to $ 71.70 per barrel.

Such movements is the reaction of the market to the fifth reduction of oil reserves in the United States, as well as a possible decline in exports from Iran, which may become a natural consequence of the US sanctions. Now the traders are waiting for the meeting of the OPEC+ committee, which will be held this weekend in Algeria. Members of the committee will submit corrected forecasts for the near future.

On Wednesday, Brent contracts grew by almost $ 0.4, while WTI increased by $ 1.27.

The US Department of Energy has provided the data on the reduction of oil reserves by more than 2 million barrels over the past week. Investors were preparing for a decline of 3 million barrels, but it was reported on the eve that the stocks had begun to grow slightly. So investors were excited about it.

Tyche Capital Advisors recalls that we shouldn’t forget about the increase in the yield of US government bonds. Soon there will be an increase in rates, which may reduce the demand for black gold.

Ten-year securities show a yield of 3%. This figure is very close to the maximum for the last 7 years.

If the trade conflict gets further development, such a growth in the energy market can cause a fall in stocks and a slowdown in world markets. Even a decrease in exports from Iran won’t affect the whole situation and the demand will begin to fall.

 

The material was prepared with the participation of Anjela Chromova,
a leading analyst of the brokerage company CT Trade

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