On Friday, oil was growing due to the political and economic uncertainty. But on Monday, the oil market began to fall again during the Asian session.
Investors are worried about the global recession and the possibility of the predominance of supply over demand.
Brent futures for April have fallen to $ 61.5 per barrel of “black gold”. WTI contracts for March have slipped by 70 cents to $ 52. At the close on Friday, Brent was worth $ 62, and WTI – $ 52.7.
The fall of Brent and WTI has amounted to 1% and 4.6% per week, respectively.
Now the market is facing a new obstacle. Doubts about the successful resolution of the conflict between the States and China are becoming stronger, since as early as March 1 increased tariffs for Chinese goods will begin to take effect. New negotiations are scheduled for February 14-15; they can become key to the oil market.
According to Baker Hughes, the number of drilling rigs in the United States has increased by 7 units over the week. This may mean an increase in activity in the sector.
The material was prepared with the participation of Katya Gordon,
a leading analyst of the brokerage company CT Trade