Oil quotes fell by 3.5% from the local maximum of $60.7 and the upper border of the inclined price channel in which the asset has been trading since the beginning of October. At the moment, the price has shifted to the middle of the channel and continues to decline. If the current dynamics continue, a further fall to the lower border of the price channel in the range of $58.3-58.5 can be expected. The medium-term upward trend will be broken if the bears manage to gain a foothold below $58.0 per barrel.
The United States and China concluded an interim agreement on Friday. The USA will not raise duties on Chinese goods in the amount of $250 billion per year. For its part, China plans to purchase an additional $40-50 billion American agricultural products.
Nevertheless, positive dynamics in the trade war of the two superpowers did not add the necessary optimism to traders. Market participants continue to fear that a slowdown in consumption and high US production will lead to a surplus of fuel in the global market next year. The Minister of Energy of Saudi Arabia announced his readiness to prevent an excess of oil supply on the market in 2020, but at the moment the market did not reflect his words with growth.