The rates continue in the frames of an uptrend. Market volatility remains high: over the last four weeks oil prices have varied from $52 at the end of September down to 49 dollars in just a week. But the market's participants unanimously agree on the signs of stabilization and the restoration the market balance. OPEC forecasts that next year oil will cost 50-55 dollars, and by the end of third quarter of 2018 the market will have achieved a balance between demand and supply. The same opinion is held by the Management of information in the field of energy (EIA), controlled by the US Department of Energy. They predict that Brent crude will cost $52 dollars before the end of the year and that next year we can expect a further rincrease in price to 54 dollars a barrel.
This week was full of events and important news which influenced the rates. In addition to optimistic forecasts, oil has been recovering rapidly in price due to positive data about the oil reserves in the United States. According to the recently published report from the US Department of energy, the oil reserves decreased by 2.75 million barrels last week. Distillates volumes also decreased. The significant reduction of oil reserves surpassed market expectations. In addition, China, which occupies second place in volume of oil import, said that oil imports increased by 12.2% from January to September, which creates perspectives for further increases in the demand for oil.
At the moment CL/WTI oil is trading around $51.4, but given the situation on the market, there is reason to expect further growth in price in the frames of the current uptrend. In the near future, prices may recover to the level of September 28 - over $52. Therefore, the most optimal course would be the deals to BUY. At the same time, the Stochastic oscillator indicates the rates are in the overbought zone, which means there is a high probability of a price correction in the near future. So, the short deals can also be considered in short-term trades.
