Technical analysis and trading recommendations - https://fxpcm.com/en/fx/brent-price-increases-level-5100-07062016
Yesterday, oil prices have reached their highest level in nearly 10 months and came close to the mark of $ 50.80 for Brent oil.
Completed at the meeting of OPEC last week has not brought, as expected, the results of any limitation or freezing oil. The current quota for today is 30 million barrels a day was set back in 2011. In the cartel considered that the demand for oil to remain stable this year will grow by 1.2 million barrels per day, and, according to the cartel, the oil reserves in countries outside the OPEC cut.
In favor of the steady increase in OPEC views on oil in the world says, in particular, demand that the state oil company of Saudi Arabia, Saudi Aramco raised the price of varieties produced in the country for the Asian countries and the USA.
Oil prices show strong growth on the background of the continuing supply disruptions in some regions of the world, in the US decline in oil reserves, as well as reduced likelihood of rate hikes in the US in June. In another decline in US oil inventories storage tanks were reported last week (by 1.366 million barrels, in addition to a decrease in the previous period at 4.226 million barrels).
Disruption of oil supplies from Nigeria and Canada have led to a reduction in the supply of oil in the world market of more than 3 million barrels per day.
However, against the background of the price growth beginning to appear early signs of resuming drilling activity in the US. Many producers of shale oil with the cost of 30-50 dollars per barrel of production are likely to resume the supply of oil, which will increase the market supply and price of oil go astray.
If this trend will continue to grow, it will again cause a fall in prices as supply exceeds demand.
Today at 20:30 (GMT) American Petroleum Institute (API) will release its weekly report on oil stocks. And tomorrow (14:30) The US Department of Energy will publish the official weekly data on US oil inventories.