On Thursday, oil prices are down slightly, after rising on Wednesday.However, we do not exclude that by the end of the day growth can resume.We anticipate that by the end of the week Brent price will rise to $ 38 per barrel. At the moment, Brent crude (March contracts) traded at $ 35 per barrel and per barrel WTI for delivery in March, offering $ 32.3.
Supporting quotes has the weakening dollar. Yesterday the EUR / USD pair rose sharply from 1,091 to 1,111.The increase occurred after the words of the head the Federal Reserve Bank of New York William Dudley that the US economy is facing new challenges and its adaptation to the new realities after the rate increase has been slower than expected at the Fed, so its further increase can be delayed for some time.
Also added to the market rumors that OPEC and Russia are ready to meet and discuss a possible reduction in production without the presence of the event in Saudi Arabia - one of the few members of the cartel are not willing to make concessions for the sake of stabilizing the situation in the oil market. If such a meeting does take place, then the oil has a chance to rise substantially above current levels.
Nevertheless, despite the positive news, there are factors that continue to press on the market. For example, the negative statistics on commercial stocks of crude oil, which at the end of last week rose by 7.79 million barrels. Saved as factors such as excess supply while reducing the growth rate of the major consumers of raw materials economy. We are talking about China, Latin America, the EU and Russia.