daxioma logo

Oil prices are under pressure

31 May 2019

Oil prices are under pressure

The price of oil remains under pressure, due to the conflict between China and the United States of America. Nevertheless, the global benchmark Brent in connection with a reduction in supply from OPEC is understanding and support. Yet manufacturers around the world, and the Organization of exporting countries to restrict supplies in order to tighten market conditions and not allow the prices to drop even more. The situation is extremely fragile and unstable, mainly because of large untied States trade war.

Based on recent data, managers found it necessary to reduce the net long position in futures and options for the commodity from the United States not less than a week. Moreover, there were indications that demand for oil falls, which was published with other data of the National Bureau of statistics on Monday morning. However, the volume of cars sold by companies from China, have not changed by reduction and remained at the level of 28.1 million units. Simultaneously, the expected increase in the sales of electric cars at least 27 %, which is an advantage for manufacturers. Now oil is trading with a slight increase to 58.25 USD, while Brent rose to $67,36 per barrel.

views: 1263To all news