16.09.2019: Oil quotes rally. What is next ? (BRENT, USD, RUB)
The new trade session started with a rapid surge in oil prices. What exactly influenced traders’ sentiment find out in our news release on InstaForex TV. Brent oil opened the trading week with a gap of 8 figures. A barrel of oil went up to 68 US dollars.
However, at the end of Asian session and the first half of European trading, the price rolled back to the level of 65 dollars 20 cents. Last time, such a rally was seen during the Gulf War in 1991. Today’s oil price surge is again connected with events in this region. Markets reacted to the news about a series of attacks on major Saudi Arabia’s oil facilities – the Abqaiq and Khurais fields.
The attacks resulted in reduction of oil stocks supply in the global market by 5%.
Yemen’s Houthi rebels claimed responsibility for the attacks. According to Bloomberg, the terrorists are threatening with new outbreaks.
However, oil quotes are facing a correctional decline after a sharp rise. The rollback is as a result of closing deals with profit taking after the official representatives of Saudi Aramco announced the resumption of tanker shipments. Market tensions still persist as can be observed from the oil quotes dynamics. Russian currency buyers have benefited greatly from the current situation in the market.
The Russian currency continued to strengthen against the US dollar despite signs that the pair is oversold. The price started the week with a fall to around 63.75 where resistance level was formed. Forex analysts foresee a further ruble growth, given the upcoming tax period in Russia, as well as increased demand for the Russian government debt. The quotes are very likely to drop to the level of 62.50.
How will geopolitics affect the markets and will the forecast meet expectations?
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