Oil price: the trump and $ 80 per barrel has scared off buyers

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Brent crude oil on Friday reached highs in the area of 79,50, completing close above level 79. It was the sixth day of continuous growth, which stalled on approach to key level of 80, opening the way to new heights. However, at the start of trading on Monday, prices slipped sharply, stepping back to the mark 78 on the background of some quite aggressive profit taking.
The overall picture for the global energy market justifies high prices for oil. And to the reduction of supply from Venezuela and Libya, the upcoming sanctions against Iran and the threat of lower production in Mexico, after the victory of the candidate of the left, although positive signals from US shale.
In particular, crude oil inventories began to fall, production to stagnate, and the rig count started to decline. Last week the number of active rigs fell 4 pieces – up to 858 units. This was another proof that American manufacturers are close to exhaustion of the limit of its capacity, which also plays in favor of energy cost.
Meanwhile, the recent profit-taking was triggered, in addition to reach level 80, with speculation on the fact that trump allegedly persuaded Saudi Arabia to increase oil production by 2 million barrels a day. Despite the subsequent clarification of the Kingdom that it was only about the potential shortfall of supply, prices remain under local pressure after the rollback, although the preconditions for recovery remain. Goal Brent remains around 80, and in the short term the immediate support is represented in the form of a mark of 78.
Michael Mashchenko,
Analyst social network for investors
eToro in Russia and the CIS