From the peaks of April, the price of Brent crude oil in dollars fell by about 15%. According to Bloomberg, this is due to concerns about a slowdown in global economic growth.
At the same time, the price of oil approached the lows of the year (1), from which there was a powerful rise against the backdrop of the OPEC+ decision to cut production. Therefore, traders assume that the price will not decline further.
This is supported by publications in the media:
→ Russia’s Deputy Prime Minister Alexander Novak reminded that Russia is reducing oil production by 500k barrels per day from the level of February 2023.
→ According to Bloomberg, with a further decline in oil prices, Saudi Arabia will not be able to balance its budget.
→ According to UBS analysts, a resumption of growth in oil prices is expected as OPEC+ cuts production.
The motives of oil producers will support the price of oil, which is still moving within the descending channel starting in 2022, as the daily Brent crude oil chart shows today.
To take advantage of trends in the commodity markets, consider enlisting the services of a reliable broker like FXOpen.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
Start trading commodities with tight spreads. Open your trading account now or learn more about making your money go further with FXOpen.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
