Stable oil prices. Investors' eyes to India and Fed

Oil prices on the Fuel Exchange in New York are not changing much, and investors focus attention on the supply of Russian raw material to India and possible effects on the markets of American federal reserve – the brokers inform.

A barrel of West Texas Intermediate in supplies on X costs at Nymex in New York 63.65 USD, lower by 0.02 percent.

Brent on ICE on X is valued at USD 67.70 for a barrel, down by 0.4 percent.

Investors follow the situation related to the supply of oil in India and the possible effects of the American Central Bank's activities in monetary policy.

Last week, the White House adviser Peter Navarro pointed out that when buying Russian oil, India finance the Kremlin's war machine. He demanded that they stop doing this.

Navarro added that Indian oil imports undermining efforts to insulate Russia.

“If India wants to be treated as a US strategic partner, they should begin to behave properly,” he emphasized.

“India is for the Kremlin +laundry +. This is reality,” said Navarro.

The United States wants to punish India by introducing 50 % criminal duties on imports from this South Asian country, and they are to enter into force on August 27.

US President Donald Trump previously imposed a 25 % duty on Indian goods and threatened to double them to 50 percent. just from August 27.

Such a rate would make Indian export to the USA, worth 85 billion USD annually, would become uncompetitive.

Meanwhile, Russia expects India to still buy its pus.

“Imports of Russian oil to India will most likely persist at the current level,” he told the reporters at New Delhi Jewgieże Griwa, deputy commercial representative of Russia in India.

“Russia sells oil to India with a 5 % discount, and the third largest economy of Asia has little alternatives,” he added.

A representative of Russia forecasts that two -sided trade with India will grow annually by about 10 percent.

Meanwhile, on Friday, the head of the Fed Jerome Powell signaled the possible adaptation of the American Central Bank monetary policy.

Powell on the symposium in Jackson Hole pointed to the possible adaptation of the FED monetary policy, among others due to the risk for employment.

“Perspectives under the base scenario and a moving risk balance can justify adapting our attitude in monetary policy,” said the head of the FED and added that the stability of the unemployment rate and other labor market indicators allows the FED to carefully proceed when he considers changes in its position.

According to “pigeon” analysts, Powell's comment leaves “open door” for cutting interest rates by the Fed during the September meeting of the American Central Bank.

Traders value the chances of reduction of interest rates in September in the USA by 25 PB. at 84 percent

“Note oil markets still focus mainly on short -term events,” says Gao Jian, Qisheng Futures Co.

“Before the positive impact of interest rates by the Fed is visible in the markets, however, it may take some time” – he adds.

(PAP Biznes)

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