Dynamics
Quotes of the oil market on Friday, January 22 and results of the auctions closed with a decrease in value against the backdrop of pessimistic sentiment of market participants regarding the recovery of world economy, but also because of the negative dynamics of equity markets and adjacent areas.
At the New York Stock Exchange NYMEH the March futures price of U.S. crude fell by 1.54, or 2.0%, and its price was 74.54 dollars per barrel.
The exchange ICE in London, Brent crude futures price fell 1.75, or 2.3%, to 72.83 dollars per barrel.
Causes
On Friday, Jan. 22 quotes on the market of “black gold” closed with a decrease in price under the following factors: 1 - economic news - oil futures to the next term of execution for two weeks, fell 10%. The pace of decline has accelerated over the past three sessions, as China took steps to reduce lending to keep its economy to overheat. Thus, under the threat turned out to be the world”s largest source of oil demand growth, 2 - the fall of the stock sites, where U.S. stocks fell a third straight session, under pressure from concerns of market participants about the plan to the White House to banks and China”s tightening of credit conditions, while under question is also tenure B. Bernanke (Dow Jones industrial average - 10172.98 (-216.90, or -2.09%), Nasdaq Composite - 2205.29 (-60.41, or -2.67%), SP 500 - 1091.76 (-24.72, or -2.21% )), 3 - negative dynamics of the neighboring markets, namely the drop in prices of precious metals.
What to expect?
Many analysts point to the fact that oil prices are still within the trading range of 70-80 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 psychologicb8eal and technical level of $ 80 per barrel, which does not allow to pass higher oil prices, thereby encouraging market participants to lock in profits on the open long positions.
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