During the trading session Monday, Brent crude oil was able to hold above $ 64 a barrel. At least in this day it was $ 63.60. Local decline could be due to a technical correction after Friday's "bullish" rally when the quotes copied two-month "high." Additional pressure on crude oil had a weak data on China's trade surplus. In particular, Chinese exports decreased compared to last year by 1.1% to $ 221.7 billion in US dollar terms. That revived concerns about the state of China's economy.
Bad statistics from China reflects a negative impact on the economy of trade conflict with the United States, which lasts about a year. December 15 to take effect the next tariff increase of up to 15% on Chinese goods worth $ 160 billion. Despite the lingering risk of increasing global trade tensions in the Asian session on Tuesday the initiative once again passed to the buyer. Apparently, market participants are still trying to assess the impact, in the long term will have on the world oil market the latest OPEC agreement + reached last Friday.
Recall, the participants of the energy pact agreed on a further reduction of production volume by 500 thousand. Barrels per day from 1.2 million. To 1.7 million. Barrels. It should be noted that, subject to the countries of the new quota, this measure may be enough to solve the problem of excess supply in excess of demand. Having said that, Brent crude oil still has the potential to rise above $ 65.
Brent BuyStop 64,30 TP 68,70 SL 63,50
Analytical reviews and comments reflect the personal opinion of the authors and are not a recommendation to trade. Author Artem Deev analyst AMarkets shall not be liable for any damages in case of a vision materials
FOREX FORECAST → How to make money on oil today? Trading Ideas Brent 05.12.2019: «Bullish" rally the oil industry has already begun!