Oil quotes again reeling. During the whole trading session on Tuesday the quotes have demonstrated rampant growth, but at the end of the day there were constraints. Will it be possible to return to a trajectory of growth or decline will resume?
After a nearly 10% drop in oil prices in the last few days yesterday, we saw the growth of Brent by more than 5%. The main driver, of course, are the incentive programs, organized by the largest Central banks and that can be expanded or transformed at any moment.
After Brexit world markets has already received around half a trillion dollars of fresh money and get another.
Japan has already announced that it is preparing another stimulus package, Bank of England Governor mark Carney also explicitly hinted at easing monetary policy.
There were, however, other stories is purely the oil that the market actively playing. We are talking about Iraq, where there was a leak from the pipeline, resulting in two export terminal stopped the shipment. It is expected that the market will soon fall short of approximately 200 thousand barrels per day. The amount is insignificant, but for speculation will go and this story.
In the end, a higher mix of mark Brent has returned to the border of the rising channel and tested it from below, but to break through that resistance and failed. While this line is a major milestone that must be overcome for the resumption of growth.
In the meantime, we see a classical picture that the big players practice almost always goes the break of the down trend, then the drop increases, lowering begin to play more of the other participants of the market “krupnyakov” gives a powerful rebound, like the one we saw yesterday, and most of the smaller speculators being forced to close their short positions either because of losses or stop-loss.
Well the evening came the data on stocks from the American petroleum Institute (API), which recorded the largest increase in reserves over the past 10 weeks.
Oil stocks rose 2.2 million barrels, gasoline inventories of 1.5 million barrels.
Oil prices, of course, reacted to the decline, however strong can not say. Now all attention will be riveted to the data on reserves and production from the US Department of energy, which will be released tonight.
In recent years, almost every time the numbers from the API and energy diverge. Perhaps this element of manipulation of markets may be the thing is that the API receives the data in the surveys, and the energy directly from the meters.
Anyway, last week we saw a fairly strong destocking, and the production decline but oil futures eventually fell by 5%.
