The rates continue in the frames of upward trend, successfully exceeding the level of $70. The steady increase in oil prices was caused by the growing demand for the “black gold” and geopolitical factors, such as the resumption of sanctions against Iran. There was a probability of oil shortage in the market, even despite the growth of oil production in the US. Amid these factors the achievement of a price peak has been constantly postponed, considering that oil regularly received new incentives for growth.
This week the price of oil declined due to the unexpected growth of oil reserves in the US by 5,778 million barrels, while investors, on the contrary, expected a decline in oil reserves in the US by 1,567 million barrels. Moreover, gasoline reserves in the United States unexpectedly increased as well. At the same time, for the first time in years the US expressed worries about the rapid growth of the value of oil. In addition, OPEC plans to consider the repartition of the quotas for oil production, this time excluding Iran and Venezuela. Thus, there are perspectives for increasing oil production in OPEC countries.
On the chart we can still see the rates within the current uptrend, with no signs of completion. The decline in oil occurs within the frames of the long-expected price correction, after which oil prices have to be recovered to the recently reached level of 72.6 -73 US dollars. At the same time, there are a number of prerequisites for further consolidation of the rates in the range of 70-72,6 dollars. In any case, the most effective at the moment appear to be the deals to buy, according to the current trend. This is also confirmed by the technical oscilators (RSI, MACD, Stochastic) which unanimously indicate the rates in the oversold zone.
