Technical analysis and trading recommendations - https://fxpcm.com/fx/brent-price-prospects-18042016
Overview and Dynamics
On Monday the oil market collapsed by almost 10%, dropping below $ 41 per barrel of Brent crude oil. The collapse of oil prices caused the withdrawal of investors in the yen as a safe haven asset, and a sharp decline in commodity currencies quotations, such as the Canadian and Australian dollars. After the meeting in Doha, which investors had hoped, putting on rising oil prices fell, the price of Brent crude from the opening of the trading day was at the level of 40.85 dollars per barrel. Saudi Arabia has refused to enter into any agreement to freeze production at the level of January or February without Iran's participation.
At the forefront of new advances excess of supply over demand of oil in the world.
Oil production in OPEC is already at the level of 32,4-32,6 million barrels a day.
In the US, crude oil storage tanks in the amounts to almost 530 million barrels, which corresponds to historic highs in the past more than 80 years.
Left on the US Department of Energy data on commercial oil reserves in the US last week showed another increase in inventories (6,634,000 barrels for the previous period).
If increasing the supply of oil in the world will not be balanced in the same growing demand, the price of oil may return to the downward trend in the near future.