oil Prices are growing rapidly for a second day after a slump to record low levels. Oil began to go up the evening of March 19 at 6-7%, and today, the growth continues. It’s all in the trump.
the Price of contracts for the supply of oil rose sharply from 9 am to 6-7%.
According to trading on the 11:20 GMT, the price of a barrel of European benchmark Brent rose by 6.4% to $30,4 per barrel, while American WTI – by 7% to $28.
the Russian export grade Urals has risen to $28 after the collapse to $19 per barrel. But this is not enough: the Russian budget is made at a price above $40 per barrel, and now the country is spending reserves to budget and maintain the exchange rate.
“a High probability of further growth to $40 per barrel on the background of active measures on the part of Donald trump. After the US President joined a strategic U.S. reserves of cheap oil at 77 million barrels, and expressed support for the industry, he will certainly try to negotiate with Saudi Arabia to regulate prices, to further reduce pressure for the entire oil shale industry, which is experiencing the worst of times”, — said Iskander Lutsky, chief investment strategist ITI Capital.
In his opinion, the market is winning back the news regarding the previously announced measures to stimulate the economy and stabilize financial markets.
the Previously announced main package — run cash infusions to the markets in the US and in Europe, fiscal stimulus around the world. The most significant package of proposed US administrations — to $1.1 trillion.
“All this was ignored by the markets due to the proliferation of coronavirus. This is and will be a key factor of the bearish trend. Therefore, the current rise is delayed rebound, which again might fall”, — predicts expert.