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Oil Is Closing the Gap

Olymp Trade

Oil went down after a sharp increase on Monday. Local maximum was fixed at around $69.6 per barrel, so total intraday growth was around $9.5 or 15.9%. However, on Tuesday, oil prices fell impulsively and now is traded in the $63.0-64.0 zone. With a high degree of probability, the decline will continue in the medium term until the resulting gap closes at around $60.0.

The fall in quotations occurred against the backdrop of the withering Saudi Minister of Energy, that the country will be able to fully restore production at 9.8 million bpd by the end of the month. Goldman Sachs analysts believe that the global market has enough resources to compensate for the sharp decline in production even without using the strategic reserves of the countries from the Organization for Economic Cooperation and Development (OECD).

On Wednesday, crude oil inventories data in the United States was published. According to the EIA, oil reserves increased by 1.058 million barrels, better than the forecast of a 2.496 million decrease. Data on the stock of distillates and gasoline turned out to be close to the forecasts. The news caused an increase in volatility in the market, an increase in quotations and breaking through a local trend.

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Source: https://olymptrade.com/
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