Brent crude on Monday retreated to support the $ 66 per barrel. In the Asian session Tuesday, the situation has hardly changed, Brent continued to be quoted close to this level. Last week, when tropical storm "Barry" was raging in the Gulf of Mexico, many oil producers were forced to cut production, evacuating staff from a number of oil platforms.
At the moment, the threat of the storm will grow into a devastating hurricane has passed, oil platforms are gradually reduced production, reducing the possibility of short supply of raw materials on world markets. The pressure on the cost of Brent could also have a weak data on China's GDP. According to data published on Monday, China's economic growth slowed to 6.2% in the second quarter, reaching the lowest level in 27 years. The reason for this was the fall in domestic demand and a trade war with the United States. Further dynamics of oil will depend on the reaction of market participants in the upcoming US report on oil stocks. Data from the Energy Information Administration will be released tomorrow at 17:30 GMT.
Estimated change in inventories can be assessed according to the American Petroleum Institute (API), which will be published today at 23:30 GMT. Given that a tropical storm is clearly influenced by the level of oil production in the Gulf of Mexico and, as a consequence, the volume of the subsequent processing, there is a high probability that the stock will decline and by the end of last week. In this scenario, oil buyers will have yet another reason for the growth.
Brent BuyLimit 65,80 TP 70,50 SL 65,20
Analytical reviews and comments reflect the personal opinion of the authors and are not a recommendation to trade. Author Artem Deev trader analyst AMarkets