Oil has stopped its 4-day rally as traders are evaluating the crude inventories report released yesterday. Crude stockpiles in the US have significantly increased while analysts predicted a decline. This news disappointed oil buyers who expected the prices to saty at high levels. Today, Brent has lost 0.39% and slipped to 66 dollars a barrel. The benchmark crude is currently trading at 65 dollars 76 cents. Traders still hope that the price will hold above the important level of 65 dollars a barrel despite a persisting downward trend. Market participants are looking ahead to the official weekly report from the US Energy Information Administration. Crude inventories are expected to drop for the past week. If the report of the American Petroleum Institute is confirmed by the official data from the EIA, this will indicate the maximum rise in crude stockpiles since January.
On Wednesday, West Texas Intermediate crude declined by 0.64% and has settled at 60 dollars 44 cents a barrel. Since the beginning of the year, the American benchmark oil has gained more than 33% while Brent has advanced by 22.4% since January. The market sentiment remains largely stable allowing oil prices to consolidate near high levels. Brent is expected to trade in the range between 64 and 65 dollars per barrel during the day. In the mid-term, the levels of 62.5 and 68.7 dollars a barrel will serve as the nearest target for the price.
The Russian currency is trading firmly high on Wednesday with the dollar/ruble pair holding at the level of 62.55. Absence of any negative internal factors supports the ruble. Moreover, no significant macroeconomic data is expected today as well as no clarity in the US-China trade deal appears. So, the general background remains fairly positive for the ruble. However, sentiment of the ruble buyers may be spoilt by resumed talks about sanction against Russia. Recently, the US Congress approved sanctions against the Nord Stream 2. Besides, today the US Senate is about to discuss the DASKAA bill. These events may stop the ruble’s rally.
High oil prices and peak of tax payments in Russia will continue to support the ruble. In addition, today the auction placement of federal loan bonds will take place.
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