The price of oil resumed its global with the support of the OPEC+
Despite the fact that because of the storm oil production in the Gulf of Mexico decreased by 73%, it was not enough. Global oil prices have resumed active growth.
Basically, the increase in oil prices was constrained by the General economic slowdown against the background of trade wars between the US and China. This dominant factor will persist for a long time.
Price stability in the oil market is that OPEC+ continued to cut production and signed an agreement for 9 months. Participants understand that an artificial reduction in recent years began to have constant character, although initially such a measure was to be temporary – were required to stop the rapid decline in oil prices.
In the end, the market adapted and balanced in the area of $66,00 per barrel. At the moment it is the Golden mean, which we will see if the current geopolitical factors of influence. In the case of resolving trade conflict between the US and China we will see a significant shift in a positive direction.
The volatility of the oil market this week will give the data from the us energy departments. In particular, on Tuesday the planned publication of data on weekly crude oil inventories in the U.S. from the American petroleum Institute (API), on Wednesday we will learn about crude oil inventories from the energy Information Agency (EIA), and on Friday will report the total number of active drilling rigs in the U.S. Baker Hughes.
In the short term, oil prices will remain stable. Brent will trade between $66,00 – of 67.00 per barrel, WTI – in the range of $59,60 – of 60.86 a barrel.
“International financial center”