The oil price weakens, OPEC at a loss

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At the end of trading on Thursday Brent began to take positions, departing from the local maxima in the area 78,50. In Asia, the quotes were under pressure but found support at 77 and a little cheered.
Prices remain high, but the way upward is given with great difficulty. This is largely due to the aggression of the trump in the direction of OPEC – the American leader does not tire of accusing the cartel artificially inflated prices and encouraged its members to open the valves at full to lower the price of heaven.
The situation on this front is formed tense. OPEC countries have not yet given a concrete response to the calls of trump, although to increase production, they will in any case be in accordance with the updated terms of the transaction.
In the broader context of upside risks in the market now dominate, and they are connected with reduced the world’s supply. This, of Course, Venezuela, Libya, Angola, Iran, against which soon will resume the sanctions. By the way, yesterday Tehran has threatened to close the Strait of Hormuz, through which supplies from the Persian Gulf.
Let’s not forget about the signs of the slowdown in the United States. last week production in the United States again remained unchanged, while inventories rose unexpectedly and spoiled the picture. However, the overall trend, including a stop of growth in the number of drilling, suggests that the American kancevci are at the limit of their capabilities.
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Michael Mashchenko,
Analyst social network for investors
eToro in Russia and the CIS