The bullish trend has been setting the tone in the oil market since last week. Aleksander Davydov comments: Oil is extending gains as oil traders seem more and more confident that major exporters will reach an agreement to cap output at the informal talks in September. Besides, oil receives a boost from the lower probability that the US Federal Reserve will raise the funds rate in September. Thus, Brent crude is likely to grow to 48 US dollars a barrel. End of comments Meanwhile, oil prices have surged 10% in August. The oil rally is driven by the comments made by Saudi Arabia’s oil minister last week. He assured the market that the cartel and non-OPEC producers would hold an informal meeting next month to discuss ways to tackle the global oil glut. Russia will also join the talks. Citing Russia’s energy minister, Moscow is currently consulting with Saudi Arabia and other oil producers. The Russian ruble is now taking advantage of the situation and trying to gain ground against the US dollar. Today, the Russian ruble has put pressure on the US dollar. The dollar/ruble pair is trading at 63.72. Currency strategists assume the pair could decline to 63.00 today. Investors are awaiting August 25 and 29, the key dates in the tax filing period in Russia. Though, the situation could change today depending on figures in the US statistics. Considering forecasts, analysts think the US dollar is set to ease today. Recently, investors are discouraged with the latest data on the US economy, so the pessimistic sentiment weighs down the US currency. https://www.instaforex.com
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