The price of oil are unable to realize growth above the level of 70$ per barrel

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On Monday, the oil showed lackluster momentum. During the day prevailed downside bias. In the framework of technical correction from the highs above $ 70 prices reached levels near 69 and ended in the mid range. In the morning the barrel resumed its rise and is aiming for 70 again.
Geopolitical factors triggered a sharp but short-term growth of quotations, after which the market moved in a consolidation mode with a bearish bias. It was a local correction is quite natural, given the emotional breakthrough that preceded it. In General, the situation in the raw materials segment now looks very good. Brent is again trading near 3-year highs thanks largely to the efforts of OPEC and the belief that exporters will continue to engage the market and after the expiration of the current deal.
Meanwhile the US oil shale industry continues to act as a deterrent. Drilling activity in the country again increased the number of active rigs rose to 804 units. It speaks about the prospects of further expansion of hydrocarbon production. In recent weeks, the production shows a more moderate rate of growth and it smooths all negative on that front. However, if in the near future there are signs of increasing activity, the market will not be able to ignore the new records, which compensate for stretching of the market barrels that endow OPEC+.
So this factor may still serve as an excuse to lock in profits on the reached heights. But before we can see Brent beyond the 70 mark and even at fresh highs, albeit briefly.
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Michael Mashchenko,
Analyst social network for investors
eToro in Russia and the CIS