Oil, week “no” with supply and super dollar cut

Buying on oil stocks the price of crude oil continues

(Finance) – Oil starts to close the week down, even if not on the minimum, reflecting a currency effect and a rationing of the offer. This morning on the continuous market of Nymex, the nearest future on the Light crude trades at $ 82.3 per barrel, with a 0.8% filing compared to yesterday’s close, but above the weekly low of $ 81 touched on Monday. The Brent instead it is more stable a 90.4 dollars a barrel (-0.05%).

First of all, a currency factor, linked to the progressive appreciation of the dollar, the currency in which oil is traded. The dollar indexwhich summarizes the trend of the dollar against a basket of the main world currencies, today it earns 0.3% at 111.4sharp rise compared to 109.4 at the beginning of the week, due to the Fed’s rate hike.

The other disincentive effect is related to rationing of the offergiven that OPEC + decided at the beginning of September to cut production 100,000 barrels, surprising analysts who were waiting for another increase in output.

A phone call between the Russian President Vladimir Putin and the Saudi Crown Prince Mohammed bin Salman, in the day of yesterday, i ha confirmed this line. “The issues of the Russo-Saudi coordination – explains the Kremlin in a note – in order to guarantee the stability of the world oil market. Both sides greatly appreciated the efforts under OPEC + and confirmed the intention of continue to adhere to the agreements achieved“. The next OPEC + meeting will be held on 5 October.

To counterbalance this effect the slowdown in negotiations that would have guaranteed the return tonuclear deal with Iranable to release a large quantity of production from the Middle Eastern country under sanction.

(Photo: © Aleksandr Prokopenko / 123RF)