Tension on the oil market is building: oil quotes are gradually falling. Brent oil this morning was trading at $55.9 per barrel. The price of WTI with September delivery was on offer for $49.2. Perhaps this is because the UN is currently looking over the G6-Iran agreement. After the UN resolution, the text of the agreement will be published. Then talk of sanctions being lifted will really gather pace. Investors are negative; this can be seen by the predominating amount of short positions on the oil market.
An additional negative factor is the growing oil reserves in the US. The Energy Information Agency yesterday confirmed the statistics. Furthermore, next week the Fed will convene and movements on the dollar will depend on the rhetoric coming out of the reserve. Announcements about intentions to raise the interest rates this year will provoke the strengthening of the US dollar, meaning a fall in dollar denominated commodities’ prices.
Today it’s possible we’ll see a slight rise in the quotes: investors will start to fix their profits before the weekend. However, next week we will see the fall in oil quotes continue.