Oil prices will be difficult to grow without signals from OPEC+
The oil market continues to assess the prospects for changes in the terms of the agreement OPEC+ and the potential impact of new quotas for the balance of world supply and demand. Fears of increased supply from the countries of cartel contribute to the exit from long positions on Brent after the failed attacks on the level 80.
While traders act with caution, avoiding sharp drawdowns quotes. On the other hand, the situation remains tense, and we do not see significant upside correction attempt, as it is a signal that players will continue to liquidate long positions on oil, which still remains at a high, attractive for sale levels.
To improve mood need to obtain assurances from exporters that exit strategy, which the cartel and its allies, it seems, will launch in the second half of the year, will be implemented gradually and carefully so as not to undermine the process of restoring balance and tightening conditions on the global market. In case of further drawdown price the same as Saudi Arabia can enter the market with such verbal intervention, to prevent more aggressive depreciation of the asset.
From a technical point of view, in the short term, Brent is necessary to win a mark of 75, and ideally back above the 200-day moving average in the area of 77,40. Important support is in the area 74,50, which has limited the price drop in the beginning of this week. The loss of this level would be a signal to deepen the bearish correction.
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