In Monday trading on the London Brent crude oil opened at $ 46.15 per barrel.The price gap was + 1.8%. Oil has risen against the backdrop of the resignation of the Saudi Minister of Petroleum and forest fires in Canada.
On Saturday, May 7 Saudi King Salman of Saudi Arabia dismissed the head of the Ministry of Petroleum, Ali Al-Nuaimi in connection with the abolition of the agency. Instead, the oil ministry was created Ministry of Energy and Mineral Resources, which was headed by the head of the Saudi Aramco oil company.
Canada is on. The area of forest fires in the Canadian province of Alberta has reached 200 thousand hectares.Forests burn from 1 May. Severe fires have forced oil companies to reduce oil production by 1 million barrels a day, Bloomberg notes. Experts believe that if the temperature drops and the wind subsides, fires can not be put out for several months.
Yesterday afternoon barrel of Brent fell by 6.0%, to $ 43.30. No news of the fall in prices did not stand. At the inability of customers to gain a foothold above $ 46.76 the market bearish sentiment returned due to statements by the Minister of Oil of Iran Bijan Zanganeh, who on Sunday said that Iran does not accept the freeze on oil production plan proposed by Saudi Arabia.
As can be seen cycles correction to the trendline $ 42.67, but there are risks to fall to $ 42.20 / 30 per barrel.
As passed Support Zone $ 44.17 - $ 44.43, and the economic calendar is empty today, the forecast today, it is more expedient to consider reduction of oil prices to $ 42.20. Perhaps, for the level of $ 42.20 Tuesday low and slightly shocking. If the price will not keep up with the target line, then as a goal is possible to predict the level of $ 42.60.