Dynamics
Quotes of the oil market on Thursday, January 28 and results of the auctions closed with a decrease in value against the background of strengthening U.S. dollar on the foreign exchange market, FOREX, and also because of the negative dynamics of equity markets and adjacent areas.
At the New York Stock Exchange NYMEH the March futures price of U.S. crude fell by 0.03, or 0.1%, and its price was 73.64 dollars per barrel.
The exchange ICE in London, Brent crude futures price fell 0.11, or 0.1%, to 72.13 dollars per barrel.
Causes
On Thursday, Jan. 28 quotes on the market of "black gold" closed with a decrease in price under the following factors: 1 - strengthening of the dollar in the FOREX market against the backdrop of economic output makrostatistiki and news (investors are increasingly worried that problems with a public debt of Greece and other countries affected by the euro area, in addition, rating agency Standard Poor "s has indicated that it no longer considers the UK banking system to the most stable and having low-risk banking systems in the world), 2 - negative dynamics of the stock of sites where action United States passed the position, led to lower sector technology companies (Dow Jones industrial average - 10120.46 (-115.70, or -1.13%), Nasdaq Composite - 2179.00 (-42.41, or -1.91%), SP 500 - 1084.53 (-12.97, or -1.18%)), 3 - reduction in adjacent markets, namely the drop in market prices of precious metals, 4 - investors refrained from active operations against the background of weak demand for oil in the U.S., which is the world"s largest oil consumer.
From news worth noting that the Iraqi Oil Ministry signed a contract to develop oil field Halfayya "with a consortium of Chinese CNPC (50%), French Total (25%) and the Malaysian Petronas (25%). Estimated reserves "Halfayya" estimated at 4.1 billion barrels. The companies plan to boost production to 535 thousand barrels per day. The volume of oil production in Iraq thanks to new contracts with foreign companies and develop their own oil production will reach 12 million barrels a day, said Iraqi Oil Minister Hussain al-Shahristani at the end of the tender for the development of ten fields, which was attended by 44 companies.
What to expect?
Many analysts point to the fact that oil prices are still within the trading range of 70-80 dollars per barrel and may have potential for further growth. The close relationship between oil prices and U.S. dollar is expected to continue to set the tone for trading on the oil market.
Why worry?
The main negative factors in the oil market are U.S. dollar and the technical picture, namely, the psychological and technical level of $ 80 per barrel, which does not allow to pass higher oil prices, thereby encouraging market participants to lock in profits on the open long positions
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