Brent crude continues to consolidate just below $ 60 per barrel, due to the lack of local news triggers. It is worth noting that the situation may change tomorrow, when the attention of traders will be presented in the United States report on oil stocks. According to the forecast, oil inventories last week rose by 1.4 million. Barrels. If the forecast is confirmed, the risk of oversupply may well put additional pressure on oil. Factor reducing prices also remain concerns over the prospects for global economic growth.
According to the International Monetary Fund, global GDP growth in 2019 may prove to be the weakest since the financial crisis, and will be 3.0%, compared with the July forecast of 3.2%. Recall that in the first half of 2019 global GDP growth amounted to 1% - the lowest level since 2012. As the main reasons for the decline of the IMF says the US-China trade war. Meanwhile, negotiations are continuing between the two countries and will be resumed at the level of deputy until the end of the week.
News background from the Middle East remains calm, which also keeps the buyers from the desire to win back the potential risk of an interruption of supply, which can be realized in the event of a further escalation of tensions between Saudi Arabia and Iran. Taking this into account, short-term priority is for "short" positions in oil, however, the mood can change quickly. For example, do not underestimate the effects of market optimism burst in case of reaching an agreement on Brexit.
Brent SellStop 58,70 TP 57,10 SL 59,10
Analytical reviews and comments reflect the personal opinion of the authors and are not a recommendation to trade. Author Artem Deev AMarkets shall not be liable for any damages in case of a vision materials
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