29.04.2019: Traders avoid buying oil futures after recent plunge (BRENT, WTI, RUB)

At the start of the new trading week, oil prices stabilized after the recent plunge. On Friday, a barrel of the Brent crude benchmark depreciated by 3 dollars. The quotes took a nosedive towards 71.50 level. Today the price keeps hovering near the same levels, unable to gather upward momentum. Crude oil failed to get support from such factors as worries over shortage of energy amid disturbances in Venezuela and Libya as well as imposition of sanctions against buyers of Iranian oil that shall come into effect on May, 2. Reportedly, Donald Trump urged OPEC countries to offset the shortage of supplies from Iran. This news has influenced the market sentiment. The cartel members and Russia stoke a deal on the output freeze in order to stabilize oil prices. Now the question is, how the terms of the deal will change amid a significant decrease in exports of crude oil from Iran. As long as this question remains unclear, oil futures are unlikely to recover. However, a new plunge is hardly possible as the number of active drilling facilities in the United States declined. On Friday the oil rig count report showed
a decrease of 5 units for a week. However, at the start of the European trading
session oil prices inched down. The West Texas Intermediate benchmark retreated to 62.50 dollars per barrel. The Russian currency has also weakened, following a decline in oil prices. The ruble started this week’s session at the same levels that were seen on Friday. The dollar-ruble pair was stuck in the range between 64.60 and 64.80. Besides, investors are selling the Russian stocks which also can put the ruble under pressure. For the time being, ruble traders are passive.

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