The price of oil remains above $ 53

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After a sharp recovery to 8 percent, oil prices resumed their decline on Thursday, but held above the level of $ 53 per barrel Brent. The market remains in bearish phase, but the pressure on quotes have now subsided, largely due to some improvement in investor sentiment on the us stock market.
The market has switched from a free fall mode “swing”. This behavior of prices can be traced to the active participation of speculative activity – the players just decided to buy the fallen in price contracts near the mark of $ 50 and above $ 55, the asset is not allowed because of the lack of fundamental reasons for the development of the pulse, and on the background of the relevance of the sales growth.
The overall situation in the energy sector have not changed – the bearish sentiment continues to prevail, and in the medium term the situation is unlikely to significantly change for the better. Investors need to see stable decrease in activity in the shale deposits of the United States and the preservation of a healthy global demand for black gold, to believe again in the potential futures.
Next year at some stage, the market is likely to grow when US sanctions against Iran will come into force in full scale after the expiration of the exemptions for the eight buyers of Iranian oil. But it will happen assuming that the world economy will not justify the alarming forecasts of lower global demand for oil.
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Michael Mashchenko,
Analyst social network for investors
eToro in Russia and the CIS