Azerbaijani analysts: Growing expectations for rising oil demand driving up Brent prices

2 June 2020 14:46 (UTC+04:00)

By Trend

Growing expectations for rising oil demand in the global economy are driving up Brent oil prices, which, if it exceeds $38, could reach $46 per barrel this week, Trend reports citing the weekly review of Azerbaijan’s InvestAZ Investment Company CJSC.

The InvestAZ’s analysts noted that the upward trend in prices will continue.

Traders are focusing on US oil and gasoline reserves, which will be published at 18:30 (GMT+4) on June 3.

The company’s analysts also presented data on the situation in international financial markets and short-term forecasts.

Euro

Growing expectations for the resumption of economic activity in the eurozone and the adoption by the European Commission of an economic development program in the amount of 750 billion euro have led to both an aggravation of US-Chinese relations and a rise in price of the euro.

According to studies, pricing for EUR / USD can go on up to $1.13.

British pound

The dynamics of the GBP / USD decline reaching $1.19 per pound may weaken amid the key indicators related to the sectors of industry and services, which will be revealed this week.

Investors are also focusing on negotiations with the EU amid Brexit’s economic agreement.

The GBP / USD rate is also on growing, and it is forecasted that growth will continue to the level of $1.26 per pound.

Amid the Brexit’s economic agreement, negotiations between the UK government and the EU will have a strong impact on the rate. Investors will be especially focused on the services and construction sectors - on June 3 and June 4, respectively.

Turkish lira

The USD / TRY depreciation observed over the past weeks continues and can reach the level of 6.97 Turkish lira per dollar if it breaks the bar of 6.84 Turkish lira per US dollar.

Important fundamental indicators of Turkey are expected with great interest, which will be published at 11:00 (GMT+4) on June 3.

Gold

The global economic crisis leads to the fact that demand for gold in precious metal markets alternates with supply, causing "resistance" at around $1,700 per ounce ($54.7 per gram). In the near future, an increase in the price of an ounce is expected to reach $1,651 ($53.1 per gram).

Gold prices on precious metal markets continue to rise, and so the price per ounce can reach $1,740 ($56 per gram) and $1,765 ($56.8 per gram).

The above data are purely advisory in nature, and InvestAz, based on the foregoing, does not bear any obligations for ongoing investment operations.

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