14.04.2014 - Oil remains expensive

The price of American benchmark Light Sweet crude oil continues to hold at high levels and is currently trading around the level of 104 dollars per barrel. The reason for the growth was positive data on consumer confidence in the U.S., which increased to 82.6 in April, against the forecast of 81.2. In addition, analysts of the International Energy Agency lowered its forecast for oil demand on the world market. In particular was reduced the forecast of oil consumption in Russia by 55 thousand barrels per day to 3.5 million barrels, with the possibility of further reducing by another 150 thousand due to the economic sanctions against the country.

Additionally, the organization announced the reduction of oil supply by the countries that are not the members of OPEC for 250 thousand barrels. At the same time we note the record volumes of oil production in the U.S., along with the growth of exports from Iran that may lead to a decrease in the price of oil. In the near future prices will be maintained by instability in Ukraine. We maintain a long-term negative outlook for oil.

Wish you the profits!

FXFINPRO Capital Analytical department.

RISK WARNING: Trading of complex financial products, such as Stocks, Futures, Foreign Exchange ("Forex"), Contracts for Difference ("CFDs"), Indices, Options, or other financial derivatives, on "margin" carries a high level of risk, and may not be suitable for all investors. The possibility exists that you could sustain a loss of some or all of your initial investment and, therefore, you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with trading these markets, and seek advice from an independent financial advisor if you have any questions or doubts. Please carefully read our full "Risk Disclosure" and "Risk Disclosures for Financial Instruments & Investment Services". FXFINPRO Capital is the trading name of PFX Financial Professionals Limited, a limited liability company formed under the laws of Cyprus, registered with the Registrar of Companies in Nicosia, Cyprus, under nr. HE 237840 and regulated by the Cyprus Securities and Exchange Commission with license number 193/13.