Brent crude oil on Tuesday reduced trades. The price of Brent was $ 57.07 per barrel. Apparently, retailers managed to seize the initiative and for the first time from February 10 to withdraw quotes in negative territory. Recall that could keep its positions last week, oil prices rose by about 5% on Monday. Pressure oil continue to spread of coronavirus, as well as its impact on demand, doubts about the ability of OPEC + to agree on measures to support oil prices, as well as the revision of the forecasts of oil demand from OPEC and the Energy Information Administration.
An additional factor in price reductions were also made by Moody's Investors Service comments that "coronavirus outbreak creates new risks for the prospects of stabilization of global economic growth in 2020 and constitutes a threat to international trade and tourism." Based on this in the Moody's lowered its forecast for global GDP growth of 0.2% in 2020. According to the updated forecast, G20 economy will show growth of 2.4% this year.
Against oil purchasers also made data on Japan's GDP, which proved to be the weakest in six years. In the fourth quarter of 2019, consumer spending in Japan fell by 2.9%, 3.1% sagged business investment by 0.1% - exported. Market participants believe that in 2020 the situation will worsen and technical recession is inevitable. Negative impact on the Japanese oil statistics due to the fact that Japan is the third largest net importer of oil in the world. Considering the above, Brent quotations risk to remain under pressure.
Brent SellStop 56,80 TP 54,10 SL 57,40
Analytical reviews and comments reflect the personal opinion of the authors and are not a recommendation to trade. Author Artem Deev trader analyst AMarkets. "Forex Special" is not responsible for any losses in the case of review materials.