Oil fell yesterday at 1%, investors are disappointed with OPEC
After a half-hearted hesitation Brent crude resumed its decline and again violated the integrity level 60, and even closed below this level yesterday, losing over 1%. Morning Tuesday quotes trying to gather strength and return beyond the psychologically important level, but repair attempts definitely look too timid to count on a clear strengthening in the short term.
Market participants continue to react to their disappointment in the outcome of the summit of OPEC+. The players clearly did not like that the new deal will come into force in 2019, as a reference point was taken high October levels, and there is no clear designation of who by how much to reduce production, which increases the uncertainty.
Also the oil market is watching the dynamics of the interest risk, which investors do not show. On the contrary, this front concerns only intensified amid weak statistics from China, which is alarming investors in the context of the prospects for energy demand.
Today, API will release its weekly report prior to the official release, which usually attracts more attention of market participants. If crude oil inventories will reflect a reduction, Brent may rise above 60, but for a more sustainable and large-scale rebound will require a General improvement in market sentiment.
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