On Thursday, oil returned to a downtrend range, its recent breakthrough turned out to be the bull trap. At the moment the asset is trading in the zone of $59.5-61.0 per barrel, however, the current decline is likely to continue to the level of $58.0. As always, main drivers for the movement are fundamental factors.
A meeting of the OPEC + Ministerial Monitoring Committee was held on September 12 in Abu Dhabi. Saudi Arabian Energy Minister said that any discussion of deepening production cuts under the OPEC + deal is possible only in December. This news caused a decline in quotes by almost 3%. The fall also intensified due to rumors of a possible easing of US sanctions against Iran. If this happens, then up to 700 thousand bpd can return to the market. Another downward factor was the IEA report, in which the agency believes that in 2020 the supply in the oil market will increase.