Crude oil prices are moving downwards after both
benchmarks WTI and Brent reached the psychological level at $50.00 per barrel
for first time since respectively October and November last year. The appreciation
of "black gold" could be considered by the Fed as another sign for
economy improvement in global aspect, that could support the eventual increase
in interest rates in the US in June. The
appreciation itself would hardly be a determining factor in the decision of the
central bankers, but that in turn would affect the levels of inflation in the
country. Although it is not expected significant reduction of production
levels, investors are awaiting the OPEC meeting on Thursday in Vienna, which
outcome would impact on quotations of the crude oil.
Today oil prices still
suffer from the stronger US dollar, though it was slightly supported by the beginning of the summer season in the
US, which coincides with the US crude production decline to its lowest level since September
2014.
Today's trend is a continuation
of the market situation from the end of last week. In the morning WTI slipped with 12 cents to trade at $49.21 and Brent fell with 21 cents to $49.11.
On Wednesday will be released the data by the American Petrolium Institute and
on Thursday is due the official government data. And ahead of the OPEC meeting,
this week will bring increased volatility on markets.
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