Brent crude during the trading session on Monday showed the largest rally "bullish" for more than 10 years, recovering to $ 68 per barrel. It is worth noting that the market enthusiasm continues today. By 9:00 Moscow Brent is quoted at $ 68.70, seriously intending to test the resistance of $ 70 per barrel.
Pedigree rally in the oil market is still due to events in the Middle East, where over the weekend was an attack on oil facilities in Saudi Arabia. According to the International Energy Agency (IEA) due to the incident kingdom daily production decreased by 5.7 Mill. Barrels, equivalent to almost 5% of the world's daily oil consumption. Rising oil prices could be more significant, if not the Saudi comments that the existing kingdom reserves are sufficient to meet obligations to consumers.
However, as there is always a "but". The volume of reserves of Saudi Arabia is about 188 million. Barrels of oil and 97 million. Barrels of oil, which should be enough to meet export orders for only one month. In other words, Saudi Arabia is ready to provide earlier delivery, but only in the short term. If, however, to eliminate the impact will need more than a month, the Saudis, faced with shortages of supply for its partners, will be in a very difficult situation. Taking this into account, increased tension in the Middle East, reducing the probability of improving the relations between Iran and the US, as well as the vulnerability of the Saudi oil infrastructure before the upcoming IPO Aramco, is likely to lead to a further rise in prices above $ 70 per barrel.
Brent BuyLimit 68,40 TP 72,50 SL 67,50
Analytical reviews and comments reflect the personal opinion of the authors and are not a recommendation to trade. Author trader analyst Artem Deev company AMarkets . Traders community is not responsible for any losses in the case of the review of materials
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