06.02.2019: Commodity currencies rise unlike crude oil (BRENT, WTI, USD/RUB)
Today crude oil prices are moving in a bearish mood on the back of the API inventories report.
The report showed that the stockpiles of crude oil in the United States increased by 2 million 514 thousand barrels after the previous slower-than-expected increase. Now market participants are waiting for the official data from the Energy Information Administration. Experts anticipate that this data will confirm a weekly rise.
Meanwhile, the Light Sweet oil futures are approaching the level of 53 dollars per barrel, having lost about 2%. Investors are still concerned about oversupply in the market amid rising oil production in the United States.
On the other hand, supplies of crude oil from Venezuela have been reduced after the US government imposed sanctions against the state-owned oil company of this country.
At the same time, the Brent crude benchmark declined by 1% and was trading at 61.50 dollars per barrel. Though the OPEC+ deal still provides support to the commodity, the bearish trend persists in the oil market.
Despite weaker oil prices, the commodity currencies are strong enough to resist their American counterpart. Thus, the USD/RUB pair remains near the level of 66.65. Analysts say that the ruble has the capacity to extend gains. Reportedly, the Russian Ministry of Finance can reduce the daily volume of foreign currency purchases in February.
Analysts predict that oil prices will continue trading near the current levels ahead of the EIA report. Similarly, the Russian ruble is expected to remain stronger against the US dollar.
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