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Forecast: Brent may rise in price

15 July 2019 [16:30] - TODAY.AZ

By Trend

Due to the state of emergency declared in one of the US states following the powerful Hurricane Barry, the cost of oil futures contracts of the benchmark Brent crude oil on international exchanges has strengthened at around $67. If trading on the stock exchanges will remain at this level, then it can be expected that the price will rise to $69 per barrel, according to the weekly summary of the Azerbaijani investment company InvestAZ, Trend reports.

Statistics on US oil reserves, to be broadcast on July 17 at 18:30 (UTC +4), will have a strong impact on the price of oil.

InvestAZ analysts also present the current state of the international financial markets and short-term expected forecasts.


With the growth of political and economic risks in the international currency markets, the forecasts regarding the reduction of the discount rate by the US Federal Reserve, which serves as the central bank, remain relevant. In this regard, expectations of a decline in the dollar against the leading world currencies by one percent are rising. In the context of political uncertainty and the backdrop of trade negotiations between the US and China, relations between Iran and the West are increasingly heating up. Based on the analysis, the rise of the euro against the dollar to $1.1313 is expected. Investors also keep an eye on the release of up-to-date information on the fundamental data affecting the economic development of the Eurozone, which is to be announced on July 16 at 13:00 (UTC +4).


In light of a possible drop in the dollar exchange rate, the exchange rate of the pound sterling is expected to rise to $1.2661. Analysts believe that political factors also affect the growth of the pound sterling. Uncertainty over the candidacy of Boris Johnson for the post of the British Prime Minister, as well as the pressure exerted on the country in connection with Brexit, are among the factors investors keep their attention focused on.


According to analysts, tensions between the US and Turkey increase the likelihood of a rise in the dollar against the Turkish lira to 5.83 liras. Investors are keeping an eye out for data on unemployment, which will be published on July 16 at 11:00 (UTC +4), and the information on retail trade in Turkey, which will be announced on July 17 at 11:00 (UTC +4).


Due to the reduction in the discount rate from the US Federal Reserve, as well as the likelihood of a decline in the US dollar, the gold prices in the precious metals market ended up exceeding $1,400 per ounce. According to analysts, if today trades are conducted at a price of $1,410 for an ounce ($45.3 per gram), then a growth of up to $1,420 ($45.7 per gram), and further to $1,436 ($46.2 per gram) for an ounce of gold, is possible.


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