The price of oil: Iran and Washington support the fall of a barrel of the fifth week

  • And
  • +A

Brent crude fell for the fifth week of their last six, although Friday ended with growth. The focus remains on Iran and the fact that Washington imposed the first set of sanctions against the middle Eastern country, forced the players to look forward to the second set of constraints relating to the energy industry. This was local support for the quotations.
In this case, the factor of pressure on prices continues to be a trade war between the US and China, which has seriously worsened last week. So further indication that the parties do not intend to go each other on concessions, and instead plan to continue the exchange rates – so far, everything points to such scenario – will increase concerns about the slowing global economy and, as a consequence of weakening global demand for black gold.
Meanwhile, the local pressure on Brent today provides statistics from the US, where last week, according to Baker Hughes, drilling activity has recovered sharply – the number of active rigs jumped 10 units to 869 units, after several weeks of systematic decline. It signals the coming growth of production in the country, which last week fell to 100 thousand barrels per day.
Given this factor, as well as avoiding purchases of risky assets, downside risks to oil prices in the short term will prevail. So, not possible to drop below $ 72 where important support is in the area of 61,60.
____________
Michael Mashchenko,
Analyst social network for investors
eToro in Russia and the CIS