23.07.202012:42 Forex Analysis & Reviews: Oil traded unsteadily

The price of crude oil continues to respond to the re-introduction of quarantine measures in some states of the US, as well as the next launch of the production of a vaccine against coronavirus infection. Black gold is growing in value, although this increase is still under some pressure.

According to reliable sources, the US Republican Party is trying to extend the period for the payment of incentive bonuses for unemployment benefits to citizens of the country, the estimated amount of which is $ 400 per week, until the end of this year. At the moment, there are payments in the amount of $ 600, but this will only last until the end of this month.

Meanwhile, the COVID-19 vaccine case is also moving forward. According to the latest data, the pharmaceutical corporation Pfizer has signed an agreement with the US government, noting that the US will purchase 100 million doses of the future drug worth $ 1.95 billion. Recall that this vaccine is a joint development of an American company with colleagues from Germany - BioNTech. The first deliveries of the drug will begin immediately after all the necessary permits are received, in particular, papers from the US Food and Drug Administration.

However, this is probably where all the positive news for the oil market ends, and then comes the not very encouraging data on crude oil reserves presented by the Ministry of Energy Wednesday evening. The published statistics reflected an increase in crude oil and distillate reserves. Last week, oil reserves in the United States increased by 4.892 million barrels. Growth was also recorded in the distillate sector, which increased by 1.073 million barrels. But gasoline stocks showed a decrease, which amounted to 1.8 million barrels. Meanwhile, crude inventories at the strategically important storage facility in Cushing also went up to 1.375 million barrels over the past week. The indicators were so unimpressive that they immediately affected the cost of crude oil on the international market, which growth, if not stopped, then became very limited.

The situation was aggravated by the fact that the preliminary estimates of the experts were much better. Thus, it was expected that oil reserves would decrease by about 1.9 million barrels, gasoline - will decrease by 2 million barrels, and distillates - will increase by no more than 280 thousand barrels. Nevertheless, the reality turned out to be more severe, which could not but have an impact on market participants.

Brent crude oil futures contracts for September delivery on the London trading floor slightly increased by 0.2% or $ 0.09, and the price has moved to the region of $ 44.38 per barrel. Wednesday's trading session ended in negative territory, although the decline was also very small with 0.07% or $ 0.03.

The price of futures contracts for WTI light crude for delivery in September on the electronic trading floor in New York also supported the positive sentiment. The growth amounted to 0.21% or $ 0.09, and the price began to be in the range of $ 41.99 per barrel. Bidding on Wednesday recorded an almost imperceptible daily decline of this mark by $ 0.02. Thus, the negative correction was so small that it did not seriously harm oil prices.

Meanwhile, the price of Brent crude oil still continues to occupy high positions at around $ 44 per barrel, which is the highest value in the past few years. At the same time, the raw material almost completely ignores the entire external, not very positive attitude, which causes some concerns among investors, who, although continue to actively work in this direction, are increasingly thinking about the possibility of a stronger correction.

So far, news about the rapid deterioration in relations between the United States and China has been completely ignored. The escalation of the conflict is gaining momentum. Thus, the Ministry of Foreign Affairs of the PRC confirmed information that their consulate in Houston is urgently closed by order of the American authorities. The Chinese authorities expressed extreme outrage at this fact and promised to come up with retaliatory measures. In this situation, it becomes clear that there can be no talk of the second stage of a trade agreement between states. So far, traders have ignored this news, but very soon they will not be able to ignore it, which may become a starting point for a long-overdue need to adjust the price of raw materials.