Oil price does not get tired to upgrade to new annual highs
The most interesting thing in the last days is happening in the commodities market. A barrel of North sea Brent grade of oil does not get tired to update the highs of a few years and torn above. Day trading on Tuesday, September 25, go around the 81,89 USD, and it seems that at this value the buyers are not going to stop.
The boom in commodity platform now contribute to several factors. The first of them – the weak U.S. dollar. It is natural – oil denominated in U.S. dollars, and in the moments of weakening it gets the opportunity to appreciate. The second point lies in the results of last weekend’s meeting of the monitoring Committee of OPEC+. It is known that the specialists discussed the possibility of increasing the daily quota of oil production by 500 thousand barrels, and large limits, but no decision in the end was not. Further discussion of the party postponed until November, when he and OPEC+, and a monitoring Committee will reconvene.
There is another important point that you need to pay attention to is comments OPEC+ that in 2019, the cartel may return to the control of production, if the global market will face a rise in excess reserves. “Bulls” is further “warmed up”.
The main question which is now of bidders – how much “climb” barrel now. On the market say about 85 USD, and 100 USD before the end of the year. But the problem is that since the beginning of 2018 Brent crude oil rose by just over 20%, and expectations “straps” of 100 USD in 3 months means that the oil must add another 25% of the “weight”. That is a lot, especially considering the continuous rise in recent weeks.
A new impetus to the rising dynamics has overcome significant highs and committed to new. The current trend can be called stable, because the initiative is part of a uniform channel. Momentum is approaching the upper border of the main corridor to level 82,20. After testing the resistance area we can expect a pullback to the 50.0% Fibonacci scale at 80,20. Signal the beginning of the development of a corrective down trend will break through short-term channel growth near the level of a total of 81.25. The first objective of the correction may be a mark 80,66, then 80,20. After reaching the reduction goals we can expect the development of the next growth momentum to new peaks.