The downward correction of oil prices did not last for long. Today, crude prices are developing a rapid rally. Oil traders are encouraged by a report from the US Energy Information Administration.
According to the official data, US oil stocks contracted 1.404 million barrels last week. Interestingly, the American Petroleum Institute reported a weekly increase by almost 5 million barrels.
No wonder the government data became a catalyst for the bullish trend of West Texas Intermediate. The North American benchmark grade broke out the level of 72 US dollars a barrel.
Brent crude is trading above 80 US dollars a barrel. Brent oil still finds support from looming sanctions from the US against Iran and the decision of Washington to exit from the nuclear deal with Iran.
The robust rally of oil prices triggered advance of the Russian ruble’s against the US dollar. The ruble/dollar pair is trading lower at 62.00. This week, the Russian currency is propped up amid the tax filing period in Russia. Its peak falls on May 25.
Another commodity currency, the Canadian dollar, could gain strength today from Canada’s employment data on the private sector. Meanwhile, the loonie is showing resilience to its American counterpart. The USD/CAD pair is trading around 1.2770.
Oil experts forecast that oil prices are set to extend a rally despite the recent report from the International Energy Agency. The dollar/ruble pair is also expected to advance. However, the Canadian dollar will depend on the greenback. A survey on manufacturing activity from the Federal Reserve Bank of Philadelphia could change a downward trend of the USD/CAD pair.
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New factors encourage oil rally (17.05.2018)