The rates continue in the frames of the uptrend which has continued since June 2017. For less than a year oil has been rising in price, from $43 to $67.25, which is the maximum price for the last three years. Having successfully overcome the mark of 65 dollars, oil continues to grow steadily and aims to reach the new psychological level of 70 dollars per barrel.
Last week oil prices gained support due to many factors, while something that used to put pressure on oil value - the extraction growth of shale oil, has retreated into the background. Furthermore, there are forecasts on significant reductions of oil reserves in the United States. In fact, new data about oil reserves will be known today.
The main growth factors were the military conflict in Syria and the decline in oil production in Venezuela, which led to a decrease in oil production in OPEC overall. The International Energy Agency reported that given the current restrictions on oil production, the market can face deficits of oil. Such forecasts match with the statements of OPEC representatives, who report that despite the growth of oil production in the United States, they managed to eliminate an excess of oil on the market, due to good demand for the “black gold” this year.
Thus, there are many factors that support the growth of oil prices on the market. Given this, we can assume that the peak prices haven't been reached yet. Despite the high probability of a price correction, which is signaled by technical oscillators (MACD, Stochastic), the most optimal in the medium term would be the deals on the trend - the deals to BUY.
