Brent crude oil declines during the trading session on Tuesday, retreating further from the local maximum of last week. The quotes are under pressure from rumors that Saudi Arabia plans to abandon the chairmanship of the OPEC + monitoring committee. Market participants believe that this may worsen the discipline of compliance with the measures to reduce production. Fears about an increase in the number of cases of coronavirus infection in the United States and Europe, as well as the likelihood of a new surge in the incidence in the United States after Thanksgiving, which Americans celebrated last week, also remain a factor in the decline in oil prices.
The day before, oil sales intensified after reports that the cartel would postpone a decision to extend the deal to cut production for several days. Earlier, information appeared on the market with reference to Algerian Energy Minister Abdel Majid Attar that OPEC members are discussing the possibility of extending the current agreement to cut oil production by 7.7 million barrels per day for another three months, however, there is no final decision yet ... Speaking at an OPEC conference on Monday, Attar noted the colossal challenges posed by the COVID-19 pandemic persist, which could drop oil demand this year by about 9.8 million barrels per day.
Recall that in April, the OPEC + countries agreed to cut oil production by 9.7 million barrels per day, and in August revised this limit to 7.7 million barrels per day. According to the current agreement, production is expected to increase by another 2 million barrels per day in January.
Now the attention of traders is riveted on the OPEC + ministerial meeting, which will take place on Thursday. If the parties to the energy pact agree to extend the agreement to cut production by only three months, such a decision is likely to disappoint the markets, since this will not be enough given the persistence of high levels of coronavirus infections in the world. With that said, oil sales may continue.
Brent SellLimit 47.80 TP 45.00 SL 48.50
Analytical reviews and comments to them reflect the subjective opinion of the authors and are not a recommendation for trading. AMarkets is not responsible for possible losses in case of using the survey materials
FOREX FORECAST → How to make money in the foreign exchange market today? Trading ideas for traders 06/19/2019 - ECB against expensive euro!
FOREX FORECAST → How to make money for a trader today? Trading ideas 06/13/2019: Oil puts pressure on the "Canadian"
News → Forex - how much can you earn? An example of making money in the foreign exchange market (from October 5 to October 9, 2015) for the EUR / USD pair?
FOREX FORECAST → How to make money for a trader today? Trading ideas 06/04/2019: ERU / USD - there is a chance to sell more expensive
FOREX FORECAST → How to make money on Forex today? Trading ideas for traders 06/18/2019: The Australian was sent to a protracted peak.