The situation aligned positive expectations for China and Europe
The world oil market is in a fever all day. On the morning of 25 January, the price of a barrel of Brent crude jumped more than 1.2 percent, and reached $61,90, but by noon was down $61,01. The same thing is happening with the WTI: the cost of the barrel was closer to $53,94 and tipped over to $53,03.
Traders are trying to make the most on the news of the coup attempts in Venezuela and the sanctions against this country.
“Jumps in oil prices on the exchanges up and down is the result of the impact of information speculation about the Venezuelan crisis. The traders ‘ behaviors are influenced by concerns that the crisis will affect oil supplies from the region. And the fact that Venezuela will be a redistribution of the market, because there really is a difficult situation, etc. But at the moment all this is speculation, since the supply of real oil yet nothing is affected,” — commented on the situation UBR.ua the Director of special projects of the SEC “Psyche” Gennady Ryabtsev.
To roll back oil prices possible on news of the trade between China and the United States.
“In General in the world markets now prevail rather optimistic mood, linked to hopes of investors for the resolution of trade conflict between the US and China. In addition, after the release of weak data on China’s GDP, market participants expect the authorities of the country of any support measures. The markets were also mostly pleased with quarterly reports of companies in the U.S. and Europe”, — explained the analyst of Forex Club Ivan Marchena.
However, to stop the rise in price of oil will not work. Price tags will continue to go up.
“I think that the price of oil will very slowly grow over the next six months by 5-10%. But this forecast is correct, unless a new political force majeure in Venezuela, for example, if there will not develop a large-scale war. In this case, the price can behave unpredictably,” said UBR.ua co-chair of the energy strategies Foundation Dmytro Marunych.
What’s in it for me
Price speculation will affect retail prices for gasoline and diesel in Ukraine only if will be delayed for a long time — for a couple of weeks. The cost of a liter of petrol and diesel at the pump they will be affected after 2.5-3 months.