Oil: Attempt to go above $ 80$ again failed

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On Tuesday, Brent tried to attack the highs of November 2014 in the area of 80.5, but again was rebuffed and during the evening sale fell down by 100 points, finishing just below the opening levels. In the morning the barrel is testing a mark of 79 dollars for barrel.
On commodity platforms again there are corrective signals. The pair lacks momentum to make a break out level of 80. Partly prevented the return of the demand for the dollar, partly – not the best API report. According to the release, crude oil inventories in the U.S. last week fell by 1.3 million barrels against forecast -1,57 million, and gasoline inventories increased by 980 thousand barrels against the expected drop of 1.4 million barrels.
However, this is only complementary factors that have increased pressure on the prices. The main reason lies in the fact that the market is already pricing in the impact of sanctions against Iran and Venezuela, and for further recovery requires fresh nourishment. Prevent the continued growth and signals from OPEC that it is prepared to compensate for the barrels, which will leave the market due to sanctions.
However, the absence of explicit negative factors in the market and the reluctance of players to move to a more ambitious profit taking suggests that prices are set to continue the rally. Left to wait for a fresh catalyst to push Brent to new heights. In the short term, adjustments in price dynamics may make the official report of the energy reserves and production in the United States. While Brent holds above 78, more aggressive correction of the question.
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Michael Mashchenko,
Analyst social network for investors
eToro in Russia and the CIS