Oil price shows acrobatic
jumps. After Monday's recovery, today it fluctuates sharply.
Front-month WTI futures were at $44,64 (by 7.56 GMT), Brent at $50.72.
This is a new decrease, compared to Monday: WTI fell 0.38%, Brent –
0.61%.
This fall is partly due to dollar growth, caused, in turn, by a surprising devaluation of yuan. The move of Chinese authorities indicates weakness in market fundamentals. It means lack of prerequisites for the growth of crude oil.
On Monday, oil futures jumped nearly 4% above January's lows. Speculative traders started to increase their net-long positions. But it did not last long. Today prices still remain 25% below their May peaks.
Experts says that the devaluation of yuan makes oil more expensive for China, and it can affect the demand. Given that China is one of world's biggest oil importers, energy market is responding to the news from China.
