Oil price: OPEC is trying to reduce the panic and support the growth

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The oil price stopped the rapid decline after the leader of OPEC, Saudi Arabia has taken the initiative and contacted other oil producers to discuss the current situation. Market participants, particularly speculators, contributed to the movement of prices, especially after the release of data on stockpiles of crude oil in the United States.
Commodity markets extremely sensitive to news and any signs of deterioration or improvement of the geopolitical situation, can dramatically change the trends. In a tense situation involving a trade war between the US and China, the oil market has entered a phase of prolonged pessimism, without clear signs of future recovery.
OPEC countries are resigned to the fact that the increase of quotas for the reduction of oil production in the current environment is an inevitable measure, although initially it seemed temporary. The U.S. continues to increase production and capture the global oil market. However, many participants understand that OPEC is able to stabilise the market, if will sacrifice his share.
Today released the monthly report of OPEC on the global oil market. It will address issues of future prospects and analyzed the factors affecting the oil market. Of course, serious growth volatility should be expected. The main factor that can affect the oil market is OPEC.
Up to this point, the market will be in a state of complete entropy. In this context, oil prices are also under pressure from trade wars. Brent may fall in the range of $57,73 – of 59.00 per barrel and WTI to grow up to $55,14.
Gaidar Hasanov
“International financial center”