Oil could rise above $ 75 in the medium term

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After falling earlier in the week Brent konsolidiruyutsya under level 75, trying to determine the direction of further movement and assess the impact of present now on the market factors. Quotes remain under the 20-day moving average, which is in the area of 75,50, where it was limited to Friday’s rise.
Market participants trying to determine the actual amount of production capacity in OPEC, which decided to return to a 100% implementation of the agreement and not to exceed the target. In the coming weeks from individual exporters can receive signals about future actions of the group subject to agreements that will make local adjustments to the dynamics of Brent.
Also, there is another factor that may support the growth of quotations in the summer. Is to stop production at the canadian company Syncrude Canada, producing 360 thousand barrels per day. And according to Goldman, because of this factor in the North American market in July may be a shortage of fuel, since the plant will reopen in August. The situation is aggravated by the fact that the supply disruptions have on the period of peak demand for gasoline in the United States. In other words, in the coming weeks, the influence of this factor may be noticeable.
In the short term, Brent could attempt to return above level 75, but this will require the relevant factors. Now that key summit is behind us, players will once again draw attention to statistics from the United States, part of which will be released tonight – API will release its data on stocks of oil and oil products in the United States.
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Michael Mashchenko,
Analyst social network for investors
eToro in Russia and the CIS