10.07.2019: US oil inventories decline, ruble under pressure (Brent, RUB, USD)
Yesterday, oil quotes barely changed, having advanced slightly by the end of the trading day. In early deals today the commodity has risen amid the latest crude oil inventories data from the United States. Brent futures continue to recoup losses after the recent sell-off that was witnessed last week.
Today the price is consolidating near the local highs and is set to rise above 65 dollars per barrel. In early deals, the Brent crude benchmark appreciated by 0.98% to 64.79 dollars per barrel. The quotes are expected to inch up towards 65.5-66.5 dollars per barrel.
Yesterday, some oil companies evacuated their staff from 15 marine oil derricks in the Mexican Gulf as a tropical storm is about to hit the shore this week. The US National Hurricane Center forecasts that the storm will be formed on Wednesday or Thursday and will move to the west through the Mexican Gulf. At the same time, the United States continues to ramp up production at a breakneck pace. In April the average output volume was at 12.16 million barrels per day.
The latest EIA report showed that the production is expected to increase to 12.36 million barrels per day.
On Tuesday the American Petroleum Institute released the weekly report on crude oil inventories in the US.
It showed a decline of 8.1 million barrels to 461.4 million. Thus, the stockpiles of crude oil have slumped for the fourth week in a row due to a seasonal increase in demand for gasoline. This data had a positive impact on the oil market sentiment. Today at 5:30 p.m.
Moscow time the official inventories report from the Energy Information Administration will see the light. If a fall reported by the API is confirmed, then oil futures will gain ground. Meanwhile, the US dollar seems to be on a sound footing ahead of Jerome Powell’s speech.
Yesterday the American currency continued rising against other majors while today it has entered the consolidation zone as investors are waiting for some clues on the monetary plans of the Federal Reserve.
At the same time, the Russian ruble continues moving in a bearish trend that was formed as soon as foreign investors started to sell their ruble-denominated dividends. The trend may change next week when the new tax period begins in Russia.
Overall, the ruble looks weaker than other currencies of developing countries despite Five minutes after the opening of the Moscow Exchange the US dollar was seen to be trading at 63.7332 ruble. The American currency added 3.82 kopeks since yesterday’s closing level.