Oil needs to build on the success of above$ 80 / barrel
On the eve of Brent crude for the first time since November 2014 pierced the level 80, referring to the area of 80,50. However, not without profit taking, which resulted in the barrel almost returned to their original positions. But the fact of the violation of the integrity of the psychologically important level confirms the serious attitude of the bulls.
Traders continue to react to the tightening of the global oil market. This contributes primarily to the expected reduction in supply from Iran. By the way, yesterday trump said that sanctions against Tehran would be “very hard”.
Optimism of participants of the market also fuels the upcoming summit of OPEC+ in Vienna, which is only a little more than a month. However, the situation is ambiguous. While the General expectations of the players are based on potential prolongation of the transaction, there is a risk that the number of exporters will perform at least mitigate the quota, citing the fact that the parties to the agreement has almost completed its task, and upon completion of the current Covenant for another six months. So as you get closer meeting of producers in the market can emerge doubts of this kind, which will force the bulls to settle down.
Despite yesterday’s correction in the course of the evening sale, which was purely technical in nature and looked quite natural after such an aggressive rally, the prospects Brent still look good. The combination present now on the market fundamental factors and realities justify the current prices and could push the barrel even higher. The primary task of the bulls at the moment – the return of above 80 and a confirmation of the breakdown level.
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