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Brent: the resistance level at 41.50, 42.30 _08/03/2016

PCM Brokers

Technical analysis and trading recommendations - https://fxpcm.com/fx/brent-resistance-level-4150-4230-08032016

After Russia, Saudi Arabia, Venezuela and Qatar last month agreed to freeze its oil production in the January levels, prices rose steadily. Rebounding from the level close to the level of 27.00 dollars per barrel of Brent crude oil, the 13-year lows, oil prices returned to their losses to date, more than 50%. Prices also rose in the wake of the reduction of drilling oil in the world and an agreement on oil production levels among the largest producers, with the hope that this agreement could be a harbinger of the reduction in oil production in the world.

On Monday, the Minister of Energy of the United Arab Emirates said that the current oil prices are forcing all manufacturers to freeze oil production.
The next joint meeting of the representatives of the OPEC and the oil producing countries outside OPEC is expected this month or next.

However, prices have adjusted quite strongly in recent years, reducing the likelihood of reaching an agreement on the collective limitation of production levels.
Futures for gasoline rose to 1,3927dollara per gallon, the highest level since 25 November. Futures for diesel fuel rose to 1.2225 dollars per gallon, the highest level since December 10.

The upcoming meeting of OPEC may be disappointing and prices fall sharply again against the background of the lack of further progress.

US domestic oil production decreased at a slower pace than expected by many investors. Also started oil production at new sites in the Gulf of Mexico.

The excess supply of oil is still here in the world. And US crude stocks are kept near the maximum volume of 500 million barrels for the first time since 1930.

The current rise in oil prices is still necessary to consider corrective as long as the price remains below the key resistance of 41.50, 44.50 levels.

Source: https://fxpcm.com/fx/brent-resistance-level-4150-4230-08032016
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