The price of oil not impressed with the record production in the United States

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In early trading Wednesday quotes Brent tried to develop the correction, but the bears did not show much initiative that soon caught the buyers, returning the asset above $ 79. Following the auction, the barrel has risen in price almost on 1,5%. In the morning Aktiv renewed their multi-year highs, touching the mark 79,44.
The IEA published its monthly report which made a mixed impression on the market. On the one hand, the Agency indicated the reduction of stocks in OECD countries to 3-year lows and the elimination of excess black gold from the world market. On the other – has lowered the forecast of world demand for the current year, citing the rise in oil prices. The organization also reminded about the prospects of further expansion of hydrocarbon production in the United States.
However, subsequently, the market quickly switched to energy Ministry data, which in contrast with the rating API, reflected the reduction in crude oil inventories by 1.4 million barrels, although not held on to forecasts for a drop of 2 million, once again the market ignored the fact that further growth of production by 0.2% to a new record high of 10.723 million barrels a day.
Perhaps the last time the players do not react to the increase in production in the United States, focusing on the successes of OPEC+, the production decline in Venezuela and lively world demand. Recently, these factors were added and the expectation of sanctions against Iran.
In the short term, Brent is required to gain a firm foothold beyond the level of 79 to make a breakthrough to new highs and challenge the cherished mark of 80. However, for a confident breakout of this line will require quite a powerful catalyst that is not currently observed. Reduces probability of breakdown of this level and as it falls the weekend before which investors are likely to partially fix profit than will push quotes to new heights.
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Michael Mashchenko,
Analyst social network for investors
eToro in Russia and the CIS