Brent crude during the trading session on Monday fell by 1.14%, closing the day at $ 42.21 per barrel. Oil pressure remains at the Asian session on Tuesday.
Market fears for the prospects for global economic growth, as well as hydrocarbon demand, led to a significant deterioration in the epidemiological situation in the world, which led to lower prices. The World Health Organization (WHO) has reported a record daily increase in incidence worldwide - more than 230,000 people. The largest increases were recorded in the USA, Brazil, India and South Africa.
Pressure on quotes is also exerted by expectations of the next OPEC + meeting, which will take place tomorrow. On Saturday, the Wall Street Journal reported that OPEC, led by Saudi Arabia, is about to ease production restrictions starting in August amid signs of a recovery in demand after its collapse due to quarantine measures. Recall that the OPEC + countries in April concluded an agreement to reduce oil production by 9.7 million barrels per day after falling demand and a price war between Moscow and Riyadh led to a collapse in oil prices. Saudi Arabia proposes to increase oil production by 2 million barrels per day. If a decision is made, the volume of cumulative production cuts from August will amount to 7.7 million barrels per day against 9.7 million in July.
Despite the fact that a number of oil exporting countries may oppose easing restrictions on production in August, fearing another collapse of quotations of "black gold" especially against the backdrop of an increase in the number of new cases of coronavirus infection in the US and other countries, most experts believe that the solution it will be accepted. Market participants believe that a decline in the total reduction in production to 7.7 million barrels per day should be regarded as a “bearish” signal for the entire energy market, as it may lead to the re-formation of excess supply. Earlier, the International Energy Agency, in a monthly report on the oil market, published on Friday, reported that global oil demand in June fell by 2.4 million barrels per day to a 9-year low of 86.9 million barrels per day. Given the above,
Brent SellLimit $ 42.50 TP $ 40.10 SL $ 43.10
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