Oil (current news)

Oil prices keep negative dynamics at the beginning of the European session. Last week, participants of the OPEC + pact agreed to extend the agreement until the end of 2018. Investors reacted quite harshly to this news, as the market has already taken into account this agreement.

After the participants of the OPEC + deal reached an agreement, market participants turned their attention to oil production in the US, as rising oil prices allowed shale producers to increase production, which would affect the growth of supply in the market.

Oil quotations are under pressure of the increase in drilling activity in the United States. According to Friday’s data by Baker Hughes, the number of drilling rigs in the US increased by 2 units and amounted to 749 units, which may just be the beginning of a further increase in the production of shale oil.

• At the moment, WTI crude oil is trading at $ 57.91, losing about -0.77% in price.
• Brent crude oil is trading at around $ 63.42, losing about -0.48% in price.

Also, see Technical Analysis of Oil.

Alexander Sivtsov