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Oil is Under Pressure

Olymp Trade

Oil is likely to complete the current week in the read. On Monday, trading started around the level $62.0 per barrel, and on Friday, the local minimum was updated at $58.6. Toward the end of the trading day, quotes returned to the area of ​​$60.0-61.0. For bulls, it is strategically important to close this week above $61.0 to continue the local uptrend. Otherwise, bears will seize the initiative and try to lower the price to the support level of $58.0 in the next trading week.

Statistics from China was a negative factor for oil. China's Manufacturing PMI in October fell to 49.3 points from 49.9 a month earlier. A trend down has lasted since this May, and in general, the index values ​​below 50 show us a weakening of activity in the sector. The trade agreement between China and the United States is also under question. Bloomberg reported that the Chinese government has doubts about the possibility of concluding a full-fledged trade deal with the United States, even despite the willingness to sign the first phase of the agreement.

According to Reuters study, oil prices are likely to remain under pressure this year and next. The survey showed that the price of Brent crude oil will average $64.16 per barrel in 2019 and $62.38 next year.

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Source: https://olymptrade.com/
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