Rising oil prices continue to amaze market participants. On Monday, May 13, it rose by 3% but this is not the limit, analysts say. Experts are trying to figure out how dangerous the current rise in oil prices will follow if a sharp rise is no less deafening collapse.
On Monday, Brent quotes reached $ 72.5, which is 2.5% higher than the previous close. Analysts believe one of the growth drivers is data from Russia, which for the first time since the beginning of the year, fulfilled its obligations under the OPEC + transaction by 100%. In the current month, the volume of daily average oil production in the Russian Federation decreased by 230 thousand barrels per day to 11.168 million barrels per day.
Experts note that the negative external background and the collapse of futures for US indices do not affect the growth of oil prices. They are confidently moving upwards but experts find it difficult to answer how long this movement will last.
The situation is complicated by the escalation of the trade war between the United States and China. Recall that this weekend, US President Donald Trump ordered to prepare an increase in duties on Chinese goods by $ 300 billion. At the same time, he warned about the further aggravation of the trade standoff in the event of a response from China. However, the Chinese authorities have introduced retaliatory tariffs and intend to defend their position. World markets are in limbo, and market players are closely watching the development of the conflict.
According to analysts, the current news background, even taking into account the reduction in oil production, did not contribute to a full-fledged rally in the black gold market. Experts believed that at the moment the market acts out technical factors and the rapid growth may be replaced by no less explosive fall.
The continuing tension between the two leading economies of the world stirs the markets and has a negative impact on the growth forecasts of the global economy, experts concluded.
The material has been provided by InstaForex Company - www.instaforex.com