11.02.2019: Crude oil attempts to recover (BRENT, WTI, USD/RUB, USD/CAD)
Today oil futures are trying to shrug off bearish pressure. Friday’s report from Baker Hughes had an impact on the commodity prices.
According to the official data, the number of active drilling facilities in the United States increased from 847 to 854 units. It is a sign that this country continues to ramp up the production, which poses risks to the global market.
The Light Sweet crude oil declined to lows, although trying to recoup the recent losses. WTI prices were trading near 52.40 dollars per barrel. Analysts expect this benchmark to inch up to 52.50 dollars per barrel.
Meanwhile, the Brent crude benchmark is heading towards the level of 62.20 dollars per barrel. The prices are rising amid the news that the United States imposed sanctions against Venezuela.
At the same time, Donald Trump spoke about a possibility of accepting help from Saudi Arabia in order to offset shortage of supplies from Venezuela. It reminds the same situation that occurred with Iran. The kingdom, in its turn, is trying to persuade Russia to participate in the OPEC+10 deal, aiming to rebalance the oil market. Russia is not eager to sign this deal while the United States is searching for bypass routes, not willing to cooperate with Russia.
The situation in the commodity currencies market is different. The ruble is losing ground against its American counterpart. The USD/RUB pair has broken the level of 65.70 and is set to rise further.
The USD/CAD pair is also stuck near highs, having retreated slightly by just 40 pips. The pair was trading near 1.3280.
Analysts predict that both oil futures and the commodity currencies will stay at the current levels. At the same time, the US dollar is expected to remain strong, so rising oil prices are unlikely to provide support to the greenback’s counterparts.
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