US National Center for tracking hurricanes issued a warning about the formation in the next couple of days of a tropical storm.
This news, as well as some weakness of the US dollar on the currency market will support oil quotes and become drivers of growth observed today. If a tropical storm is indeed formed, and will go towards the United States, it will happen on the weekend. Investors do not want to stay in such conditions in short positions and prefer to partially or completely reduce the risks by cutting the volume of shorts.
Earlier, Iran’s oil minister said he will participate in an informal meeting of OPEC in September in Algeria. It is also a favorable factor for the price, although the prevailing majority of experts did not believe that the results of the meeting will be of any effective agreements.
Many analysts and traders believe that the production freeze will not signed. Even in the case of the signing of such agreement strong doubts remain about the implementation.
It is difficult to keep a large amount of short positions, says Kyle Cooper of Ion Energy Group. ” Is in the interest of OPEC to make at least some statement on the results of the meeting, so that prices may continue to grow”, – adds the analyst.
However, the rise in oil prices on Thursday is relatively small, and the overall trend of the market over the last four trading sessions is down.