01.02.2019: Oil prices attempt to hold at highs (BRENT, WTI, USD/RUB)
Today crude oil is trading sideways after a slight correction. The anticipated positive outcome of the US-China talks provides support to the oil market. At the same time, the PMI report from China put oil prices under pressure. The report showed a possibility of a slowdown in the global economy.
As a result, Brent prices slid below the level of 62 dollars per barrel. However, crude oil may gain ground on the back of the US sanctions that were imposed against Venezuelan oil companies. It led to disruptions of supplies from this region. At the same time, the increasing output in the United States raises concerns.
The Light Sweet crude oil broke out of the flat range. WTI prices are moving downwards, approaching the level of 53.50 dollars per barrel. Today Baker Hughes will release its oil rig count report that can set the tone for trading next week.
Meanwhile, the Russian currency is losing ground against its American counterpart. The USD/RUB pair retreated from the level of 65.20 and is now trading at 66.60. The signs of a possible slowdown in the global economy amid news from China put the ruble under pressure. Besides, currency interventions of the Russian central bank also influence the exchange rate of the national currency.
Next week the Bank of Russia will hold a monetary policy meeting. According to the consensus forecast, the financial regulator is likely to keep the current interest rate unchanged, but traders hope that the central bank will ease its monetary policy.
Analysts anticipate that the USD/RUB pair will end this trading week in the green zone if the US data exceeds market expectations. As for oil futures, they are likely to settle near the current levels.
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