Following the bidding on Wednesday, March 27, oil quotes became significantly cheaper. Nevertheless, experts are optimistic but they are not expecting a further price cut by the oil industry in the United States by the end of 2019.
The sentiment of market participants was negatively affected by a report from the US Department of Energy. They mentioned that the country’s black gold reserves increased by 2.8 million barrels over the week, which exceeded analysts’ expectations. The growth of reserves was partly due to the closure of the pipeline in Houston, which negatively affected the volume of US exports.
Oil prices also reacted to the fall in the US stock market, which is usually accompanied by an increase in demand for treasury bonds. Investors also do not discount the risks associated with a possible slowdown in the global economy. The current situation is shaping the increase in demand for “safe haven” assets, experts sum up.
On Wednesday evening, the dollar appreciated in the currency market. According to analysts, this reduces the financial attractiveness of commodities traded in US dollars, including oil.
According to forecasts of a number of experts, the cost of WTI light oil will remain at around $60.19 per barrel at the end of this year, which is close in value to current quotes.
The material has been provided by InstaForex Company – www.instaforex.com