10.09.2020: RUB down on weak oil prices (Brent, USD/RUB, BTC/USD)

Oil inventories in the US rose by 3 million barrels last week, exceeding analysts’ expectations. Amid this news, crude prices are extending weakness. The ruble is falling against the US dollar due to the mixed dynamics in the energy market. Meanwhile, the price of bitcoin was up by 2% within the ongoing correction. In the morning session, Brent oil futures rose by 0.29% to trade at 40 dollars 91 cents per barrel.
On Thursday, West Texas Intermediate crude futures added 0.18% to reach 38 dollars 12 cents per barrel. Yesterday, both benchmarks posted gains with Brent rising by 3,5% and WTI - by 2.5%.
Oil prices were moderately higher on Thursday. The data from yesterday showed that US crude stockpiles increased, while gasoline stocks showed a big drop. A rise in oil reserves fuels concerns about a sluggish demand recovery as coronavirus cases continue to surge in many countries. The oil market is under pressure on the prospects of both subdued demand and rising supply. The American Petroleum Institute reported on Wednesday that US crude stockpiles and distillate inventories went up by 3 million barrels last week, whereas analysts expected a draw of 1.4 million barrels. The US Energy Information Administration will release its official inventory data later on Thursday. If the EIA confirms a rise in US crude, this will be the first stock increase since mid-July.
According to the Moscow Exchange, on Thursday morning, the dollar/ruble average weighted rate fell by 54 kopecks and settled at 75.52. Yesterday, the ruble was trading at 76.07 against the US dollar.
Today, bitcoin opened the trade in positive territory, gaining 2% in the early session within the upward correction. According to CoinMarketCap, which displays average bitcoin price for more than 20 exchanges, the cryptocurrency advanced by 2.77% to 10, 380 US dollars early in the day. On the biggest bitcoin exchange Binance, BTC climbed by 2.80% to 10,371 US dollars. Notably, bitcoin accounts for 56.5% of the market trading volume.
On Monday, bitcoin dipped below the psychologically important level of 10,000 dollars first time since July 27 and reached the mark of 9,930 dollars. Later on, the cryptocurrency made a slight rebound but then dropped again.
According to Merrill Lynch, analyst at Bank of America, it will take three years for global oil demand to recover from the pandemic, given that a vaccine or cure against COVID-19 is rolled out. As for cryptocurrencies, independent expert Mansur Huseynov thinks that the value of bitcoin may continue to fall.

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