Oil completes this week almost unchanged, local support is at $58 per barrel. Against the backdrop of positive geopolitical news, bulls managed to test the level of $61, but could not stay there, and the price returned to the range of $58.0-59.5. Price targets are indicated, overcoming $61 will open the possibility for the start of a new medium-term trend. On the other hand, breaking through $58 may result in updating local lows. However, in both cases fundamental factors of movement are necessary.
Local fundamental background is moderate. On Thursday, President Donald Trump announced that he intends to have a telephone conversation with Xi Jinping, and overall his negotiation tactics are working. Long-term dynamics, according to the OPEC Friday report, will be downward. OPEC forecasts that oil demand will average 29.41 million bpd next year, which is 1.3 million bpd less than this year. Nevertheless, the forecast for 2020 was increased by 140 000 bpd compared with the previous one.