The oil price is struggling to keep the rally going, but after a period of consolidation towards the end of the year the oil price will find its way up again.
The ongoing rally of crude oil since mid-September shows signs of exhaustion. The market may face a period of consolidation before booming towards the end of the year.
The weakening increase in the price of crude oil last week is due, among other things, to the resumption of nuclear talks between Iran and the EU. This can ultimately lead to a larger supply of oil, the analyst thinks. Before Donald Trump reintroduced sanctions in 2018, Iran produced about 3.8 million barrels per day, about 1.3 million barrels per day above current levels.
In addition, the EIA’s weekly Stock Report on Wednesday showed a greater than expected increase in US crude oil stocks.
Russian president Vladimir Putin also promised to replenish gas supplies in Europe, and falling coal prices in China continued to spread to the rest of the world.
Yet WTI, the market with the strongest fundamentals on the spot market, has managed to find support above $80.50, the 21-day moving average. On the other hand, the short-term technical outlook for Brent oil seems somewhat more challenging.
A barrel of WTI now costs $ 83.22 and a barrel of Brent $ 83.72.
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