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Oil coil

Olymp Trade

Brent crude oil continues to consolidate in the zone of $ 61.0-62.8 per barrel. The movements are quite impulsive and volatile, however, the asset does not go beyond the boundaries of the consolidation zone. At the zone of about $ 61 it makes sense to consider opening a long position. You can compare the current state with a coil or a spring, because as you know, the longer the consolidation goes, the stronger the impulse breakout and trend will be.

Fundamental factors are rather contradictory. On the one hand, OPEC + is already in the process of creating a new alliance charter with Russia. On the other hand, the US Congress approved the NOPEC bill, which is directed against the activities of the oil cartels. News about the restriction of oil exports from Venezuela did not provoke any reaction. The geopolitical oil confrontation is preparing to reach a new level, and the market is noticeably nervous about it.

The US continues to increase the number of rigs. According to a report by Baker Hughes, which was published on Friday evening, their number increased by 7 to 854. Oil production in the country is at a record level - almost 12 million barrels per day.

Eventually the oil coil will turn into a trend. However, its direction will depend on the development of fundamental events.

Olymp Trade Review

Source: https://olymptrade.com/
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