Brent crude ended the trading session on Monday with growth, recovering to $ 43.15 a barrel. The quotes managed to stay in positive territory even despite the worsening epidemiological situation in the world, forcing traders to fear for the prospects for global economic growth.
The number of confirmed deaths from the pandemic exceeded 606 thousand, with the United States taking the first place in this indicator with more than 140 thousand cases. North Carolina, Louisiana and Kentucky reported a record number of infections on Sunday, while the average seven-day infection in Florida was about 12,000.
Prices could be supported by expectations of new stimulus measures from the European Union and the United States in order to limit the negative consequences of the outbreak of the virus. The leaders of the European Union, today, after 5 days of negotiations, reached a compromise on an aid package for the most affected countries of the bloc totaling 750 billion euros. US lawmakers are also set to discuss additional economic bailout measures after returning to work this week. Recall that about 25 million Americans at the end of July may stop receiving $ 600 a week in federal unemployment benefits, which threatens to cancel out the recovery in consumer spending.
Earlier, oil prices were under pressure amid the decision of the OPEC + countries to increase oil production from August 1, bringing the overall reduction under the energy pact to 7.7 million against 9.7 million barrels per day in July. Experts believe that against the backdrop of the recent rise in prices, the real increase in production may turn out to be more significant. Thus, there remains a risk that additional supply, coupled with a relatively fragile recovery in demand, will prevent further price increases or trigger a new wave of sell-offs. The catalyst for the downward dynamics may also be tomorrow's report on changes in US oil reserves. In case of an increase in reserves or oil production in the US, Brent quotes again risk being under pressure.
Brent SellLimit 43.50 TP 41.50 SL 44.10
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