Brent crude oil after a rather volatile Thursday session today is consolidating near $ 30 per barrel. Over the past two days, buyers have tried several times to gain a foothold above $ 31.50 per barrel, however, the attempts were unsuccessful, indicating that sellers still have significant forces.
Despite the fact that by the end of yesterday, oil prices fell, most of the session they were in positive territory. According to Bloomberg, Saudi Arabia, the de facto leader of OPEC, has raised oil prices for buyers. In particular, Aramco, the largest state-owned oil company in Saudi Arabia, increased prices for June oil supplies to Asia by $ 1.4 to $ 6.5. Market participants have seen in this the first signs of Saudi Arabia’s desire to get out of the state of a price war with Russia, one of the tools of which are unprecedented discounts on oil supplied to Asian and European partners. Other oil-related news was from the Wall Street Journal stating that the US was considering reducing its military presence in Saudi Arabia. Besides,
As for the factors of oil decline, pressure on prices was provided by pessimistic forecasts of Fed officials regarding US economic growth. Three presidents of Fed regional banks on Thursday said they did not expect a quick recovery in economic activity even though some states had already begun to quarantine quarantine measures due to coronavirus. In addition, reports have also led to lower prices that some OPEC countries may have difficulty in reducing production, which has raised concerns about the implementation of the OPEC ++ agreement. Given that the global economy is only beginning to recover from the effects of the pandemic, oil demand will remain depressed until countries begin to lift quarantine measures and open borders.
Brent SellStop 29.40 TP 27.00 SL 29.90
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