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Oil price is recovering after 6% drop

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Brent crude oil and was not able to overcome level of 66.6$ per barrel. As a result, oil price collapsed by more than 6%, finding local support only at $ 62.5. At the moment there is a consolidation in the $63-64 area. $64 is the key level in order to determine short-term price movements - if bulls manage to break through it, then the next milestone will be again at $66.6. Otherwise, it should be expected a reduction down to $60.

Local support for oil prices was provided by US crude oil inventories, which fell by 1.09 million barrels last week, according to EIA. Analysts assumed that inventories would decrease by 2.96 million barrels.

Morgan Stanley analysts lowered the forecast of oil prices for the second half of current year, after the expected decision of OPEC+ on the extension of the production cut agreement, until the end of March 2020. They assume that Brent will, on average, cost $65 per barrel (down from previous $67.5 forecast). The predict WTI crude oil cost to be $60 per barrel (lowered from $65). At the same time, Fitch Solutions, an analytical company, retained its long-term forecast for the Brent crude oil price for 2019 and 2020 at $70 and $76 per barrel.

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Source: https://olymptrade.com/
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