Oil is still growing due to the investors’ optimistic mood. Analysts believe that China will be able to take measures to alleviate the effects of the outbreak of pneumonia on world demand.
At 8.30 am, Moscow time, on the London Stock Exchange, April contracts for European Brent crude oil increased almost 20 cents to $ 59.3 per barrel. At previous trade, they increased $ 1.4 and closed at a value of $ 59.1.
At the same time, March contracts of the American WTI crude oil (traded on NYMEX) rose 25 cents and cost 53.54 US dollars per barrel. Last session was successful for it too. The quotes showed a serious increase of $ 1.25. The trade on Wednesday ended at around 53.3 US dollars.
On Thursday, the Central Bank of China lowered its base rate to 4.05%. In January, the rate was 4.15%. The rate for 5-year loans was reduced to 4.75%.
Lower rates will allow the business to attract more financing. These are not all the measures that official Beijing intends to take to mitigate the effects of coronavirus. Direct investment of funds and various merger transactions are also considered as a means of helping the economy, which should play in the airline industry favor.
Recently, the market has been supported by the news about a likely reduction in Libyan supplies and the imposition of sanctions by the States against the Swiss department of Rosneft. Restrictive measures were established in connection with the supply of PDVSA (Venezuela) to West Africa and Asia in August-January.
The material was prepared with the participation of Katya Wilson,
a leading analyst of the brokerage company UFT Group