Dynamics
Quotes of the oil market on Friday, January 8 on the basis of volatile trading closed with a slight increase in price against falling U.S. dollar in the currency market FOREX, and also because of the positive trend of the stock markets and adjacent areas.
At the New York Stock Exchange NYMEH the February futures price of U.S. light crude rose by 0.09, or 0.1%, and its price was 82.75 dollars per barrel.
The exchange ICE in London cost of Brent crude futures rose 0.14, or 0.2%, to 81.37 dollars per barrel.
Causes
On Friday, January 8, quotes in the market of “black gold” in a volatile trading closed with a slight increase in price by the following factors: 1 - the fall of the dollar in the FOREX market after economic makrostatistiki 2 - positive dynamics of adjacent markets, namely the rise in prices for precious metals and 3 - to strengthen the stock sites, where the major U.S. stock indices have strengthened their positions, despite weak data on the labor market due to higher shares of industrial companies and representatives of commodity and commodity (Dow Jones industrial average - 10618.19 (11.33, or 0.11%), Nasdaq Composite - 2317.17 (17.12, or 0.74%), SP 500 - 1144.98 (3.29, or 0.29%)). Oil futures have completed the first full week of 2010 with an increase of 4%, with a rise in price was observed for 11 of the last 12 sessions. Oil prices are still higher than in 2009, even after the fall on Thursday and no change on Friday. Investors put on that strong demand for oil in Asia, together with the recovery of consumption in the U.S. and Europe will help to reduce bloated inventory in 2010.
From news worth noting that the Angolan state oil company Sonangol signed a contract with the Government of Iraq to develop two of Iraq”s oil fields. The deposits are located in one of the most troubled regions of the country. Revenues Sonangol extracted from each barrel of oil will be about $ 6. Sonangol is one of the largest companies in Africa. Its daily production in 2010 is expected to reach 3 million barrels.
What to expect?
Many analysts point to the fact that oil prices are still within the trading range of 75-85 dollars per barrel. This indicates that oil prices may have the 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 85 dollars per barrel, which does not allow to pass higher oil prices, thereby encouraging market participants to lock in profits on the long position is open .
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Review of the FOREX market for 08.01.10