The good news of the bulls in the oil market is the fact that this market has a chance of a rebound, while it is approaching the level of $ 50 $ per barrel. Unfortunately, at this time there are no certain factors that support the market.
Insignificant Macrostatistics and Oversupply of Oil
Unless another crisis of supply is predicted, which was compared according to the scale of the September attack on various oil facilities in Saudi Arabia, there are no sources of concern about oil shortages.
Moreover, the fear of a recession in the United States, backed by weak business activity in the manufacturing and services sectors from ISM, is playing against oil.
$ 2 WTI and Brent Oil
West Texas Intermediate crude oil is $ 52.81 per barrel. The trademark did not exceed $ 52.05 in intraday trading. The breakdown is expected to be reduced to $ 51 and, as a result, a breakdown of the $ 50 mark.
Under actual market conditions, WTI crude oil will not decline by more than $ 50, despite another increase in raw material inventories, according to reports in the US Energy Information Administration. Oil is expected to be squeezed between $ 51.80 and $ 53.80 next week.
On Friday, Brent crude fell to $ 58.37. Similarly, it will be able to trade between $ 57.50 and $ 59.50, with a width of $ 2.
Gold Maintains a Position of Falling Yield on Government Bonds
According to the information from the head of the Federal Reserve, Jerome Powell, the prospect of further rate cuts in order to maintain inflation will be able to keep gold above the support level of $ 1,500 per ounce.
In December, gold futures fell to $ 1,506.20 an ounce after the Ministry of Labor announced a 136,000 increase in employment outside agriculture. This indicator was below the forecast by 140 thousand but thereby reduced the unemployment rate to a 50-year low.