Brent crude oil at the end of the trading session on Wednesday fell by 0.3%, closing the day at $ 63.83 per barrel. On the eve of the pressure of the oil had data on US oil inventories change. According to a report released Wednesday the EIA, oil reserves in the US last week rose by 800 thousand. Barrels, while experts predicted a decline of 2.7 million.
On the side of sellers is also a risk that in the future supply of oil year may significantly exceed demand. On Wednesday, OPEC left growth forecast proposals outside the cartel in 2020 at a level of 2.17 million. Barrels per day, while global oil demand growth forecast for this and next year has been maintained at a level of 0.98 million. And 1.08 mln. barrels per day, respectively. Earlier, at a meeting in Vienna with the Energy Pact agreed on the need for additional production cuts at the 500 th. Barrels per day, which will be valid until the end of March 2020. The cumulative reduction proposals of the coalition will be 1.7 million. Barrels per day.
Thus, the OPEC countries have taken steps in advance + in order to avoid an excessive increase in supply on the background of a potential slowdown in the global economy. Support for oil before the end of this week may also have positive news from the fields of trade negotiations the US and China. If China intends to avoid raising taxes, which should come into force on December 15, Beijing needs to convince Trump to postpone the decision. And it must be done in the next three days. Having said that, Brent crude oil still has the potential to test the resistance of $ 65 per barrel.
Brent BuyLimit 63,50 TP 67,70 SL 62,90
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