The price of oil climbs to new highs

  • And
  • +A

On the market of black gold continues to climb new heights. So, at the beginning of a new month and week of the quotation Brent for the first time since November exceeded the level 85 and marked the highs in the area 85,42. On Tuesday morning the auction price is teetering near the psychological level of 85, trying to confirm the next bullish breakout.
Prices headed North with new forces after a weekend on the revival of expectations of sanctions against Iran. With the onset of October I went to the countdown until the entry into force of the second set of restrictions just a month and traders anticipate a supply reduction of 1 million barrels a day or more.
Also in favor of energy cost, is the fact that drilling activity in the U.S. contracted for the second week in a row, heralding the decline or stagnation of production in shale deposits.
In conditions, when traders are preparing for a shortage of global supply, the rising dollar is not a hindrance. While this driver will preserve its influence, the dollar factor remains in the background.
On the other hand, such high prices may cause a new wave of anger of the American leader. Trump may once again complain about OPEC and call it “manipulative,” although primarily the current price rally caused by the aggressive policies of States. In the case of intervention of the players will take the opportunity to profitably lock in profits on long positions.
_____________
Michael Mashchenko,
Analyst social network for investors
eToro in Russia and the CIS