Oil: Reduced exports from Iran compensates for Saudi Arabia

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On Friday Brent quotes again tried to gain a foothold above the level 78, but encroachments were too modest, and eventually the barrel slightly fell back, finished the day virtually unchanged. Thus at the end of the week prices fell slightly, but rose more than 4%, so that the month overall has been very fruitful for commodity segment.
The bulls remain in the game, but behave cautiously, fearing the influence of negative factors. Market participants did not like the results of the report on the Baker Hughes rig count, which increased by two units, to 862 last week.
But more traders are now concerned about the prospect of reduced exports from Iran after the imposition of us sanctions will be offset by other producers, including Saudi Arabia. In this context, the market will be sensitive to incoming data on production figures OPEC.
In the short term it is not excluded a new attempt to test the level 78, where important resistance is in the area of 78,30. Support is at 77.
As long as prices hold above this level, the chances for the resumption of rise remain relatively high. To prevent further growth of the prices are dollar bulls and the flight from risk amid a further escalation of the trade war between the US and China.
Michael Mashchenko,
Analyst social network for investors
eToro in Russia and the CIS