Oil now

A new week in the oil market has opened with a rapid increase in oil prices. The reason for this was the statement by the Minister of Energy of Saudi Arabia, Khalid al-Falih, on Sunday, who said that OPEC and non-cartel countries had reached a compromise on the continuation of an agreement limiting oil production. This was actually interpreted by the market as a continuation of this agreement.

In addition to the possibility of reducing the supply, oil quotes were supported by the exacerbation of tension in the Middle East. After the US President D. Trump reacted very strongly to the threats of Iran.

Under conditions of exacerbation of geopolitical risks, the likelihood of low volumes of oil production is very low. Especially if an armed conflict breaks out in the Middle East. This actually caused a decline in oil prices after rising early in the day. In the current situation, the oil market is more likely to grow, limiting itself to the global economic slowdown. The immediate prospects of the oil market indicate its growth.

Look Technical Analysis.

Brent crude oil is traded in the region of $ 72.50, an increase of about + 0.30% in price.

WTI oil is traded at around $ 63.00, a rise of about + 0.20% in price.

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Dani Leviant

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