FX.co ★ 20.04.2021: What is happening to oil prices? Check out in our review (Brent, WTI, USD/RUB, EUR/RUB)

20.04.2021: What is happening to oil prices? Check out in our review (Brent, WTI, USD/RUB, EUR/RUB)

Today, the ruble is holding steady ahead of the anticipated rate hike by the Russian Central Bank during its meeting on Friday. Both global oil benchmarks, Brent and WTI, are also trading relatively higher. Why is this happening and what is the forecast? Find out in our video review. Today, crude prices find support in a strong recovery of the US economy and hopes for the end of the pandemic in Europe and the US. Thus, Brent gained 1% in the morning session to trade at 67 dollars 70 cents per barrel. The price is heading towards the upper boundary of the channel between 65 and 70 dollars a barrel, which is also confirmed by technical analysis. On the other hand, US oil is under pressure from reports that show an increase in the number of new oil rigs. This means that US oil producers are ramping up output amid relatively high crude prices. Notably, producers in the US are not bound by the OPEC+ agreement on output cuts. That is why North American crude WTI rose by just 0.7%, a bit less than the European grade. In the early session, WTI was trading at 64 dollars 10 cents a barrel and is expected to hold in the range of 62.50 to 66.00 dollars a barrel. In recent days, the Russian currency has been fluctuating wildly due to an escalation of tensions between Russia and the West. Yet, despite all the headwinds, the ruble is holding relatively stable ahead of the anticipated interest rate hike from the Central Bank of Russia. At the same time, the US currency continues to depreciate. On Thursday morning, the US dollar index dropped below the mark of 91.00. The dollar/ruble pair is expected to trade in the range between 75.40 and 77.00 rubles per dollar. Meanwhile, the ruble has settled at 76.15 against the US currency. Unlike the US dollar, the European currency has advanced against the ruble. In the morning session, the euro/ruble pair reached the level of 91.80. The pair is likely to stay in the price channel between 90.80 and 92.80. Low volatility is explained by the fact that no key economic data is expected this week. However, on Thursday, markets will pay attention to the ECB announcement which will reportedly confirm the current course of the monetary policy. In general, global markets are focused on the Covind-19 pandemic. The third wave is already here, and the recent surge in new infection cases was reported on April 16. Therefore, major macroeconomic indicators largely depend on the overall global situation. We will keep monitoring the markets to stay up-to-date.

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