Oil prices on Wednesday, October 20, rebounded after a significant fall of the previous day. The dynamics of bidding again determined dollar exchange rate which declined against the euro on 1,7%. Supported the market and data on the smaller-than-expected increase in U.S. oil inventories.
Following the auction on Wednesday at the New York Mercantile Exchange futures price for WTI crude oil for November delivery rose 2.28 dollars to 81.77 dollars per barrel. On the eve of expiration of the November futures for petroleum of this mark. The cost of the December contract on Wednesday rose to $ 2.38 and reached 82.54 dollars per barrel. At the InterContinental Exchange in London December contract for Brent Crude oil price increased by 2.50 dollars and closed at 83.60 dollars per barrel.
The dynamics of the oil market in the last two days is very similar to a rollercoaster. Panic caused by unexpected increases in the People's Bank of China interest rates on loans and deposits, pushed prices out of the side band, where they were from the beginning of October. But the next day another sharp turn everything back to square one: investors reconsidered the ratio to increase rates in China and decided that oil demand in the country remain high.
Strong support to the market at auction on Thursday, helped the dollar, which on the background of changes in estimates of events in China have lost all of the growth of the previous day. Investors again felt zhelanie3D risk, fixed on the commodity markets, is actively selling the public a day earlier positions on the dollar.
Pressure on the U.S. currency has also published on Wednesday further review the U.S. Federal Reserve on the economy - "Beige Book" (Beige Book). According to a survey in September and early October, economic activity in the U.S. continued to grow with restraint and in some regions of growth even accelerated. Nevertheless, it was noted in the document, the growth in some sectors in some regions remains sluggish. Weakness persists on the housing market.
In general, the contents of the "Beige Book" had no impact on the expectations of investors who believe that the next meeting on November 2-3, the Fed will reshenie3D further softening of monetary policy. The dollar fell against the euro on 1,7%, to 1.3964 dollars per euro. During the day the dollar fell against the single currency by 1,9%. Support for the euro against the dollar has had a statement of German Chancellor Angela Merkel, according to which governments should develop a strategy for exit (exit strategy) programs to stimulate the economy, since the global financial crisis recedes.
