Oil: an overview of the market situation

The price of oil rose today, rising above $ 103 a barrel, which was due to shaky growth prospects among the largest consumers of oil in the world (U.S., Europe and China). Note that last week the oil recovered from nine-month lows expectations that a stronger global economic activity will increase the cost of fuel, which lured some investors back into the market. However, disappointing data limited the recovery. The U.S. Commerce Department reported Friday that the world's largest economy grew at an annualized rate of 2.5 percent in the first quarter, below expectations of 3 percent.

Meanwhile, the data that were presented today by the European Commission showed that economic confidence in the euro zone fell in April, while continuing to decline, which was celebrated last month. Note that the index of sentiment in the economy fell by 1.5 percentage points to 88.6, which was worse than economists forecast (89.4). In terms of performance the maximum decline occurred in Germany and France. Improvement was observed in Spain and the Netherlands. The pressure on the mood in the industry has a negative assessment of the prospects for production. Weakening exports and weak orders are also reflected.

We add that this week, traders will focus on the Chinese data, which may indicate that the PMI manufacturing index fell slightly in April, but remained above the 50 level that indicates expansion.

Also in focus will be the European Central Bank, which is likely to cut interest rates. However, experts believe that the move has done little to pull the eurozone out of recession.

The cost of the June futures on U.S. light crude oil WTI (Light Sweet Crude Oil) rose to 94.04 dollars per barrel, the lowest intraday level since Dec. 19.

June futures price for North Sea Brent crude oil mixture rose $ 0.78 to $ 103.52 a barrel on the London exchange ICE Futures Europe.