The rates continue within the upward trend, despite the presence of many factors that have a negative pressure on the value of oil. In addition to the usual increase in oil production in the United States, trade wars, slowing economic growth in China, and the increase in oil production in OPEC to compensate for the reduction in supplies from Iran and Venezuela also negatively impact the prices.
This week oil has been decreasing amid reports of increased oil production in one more country, Russia. In addition, the new data about oil stocks in the USA showed that contrary to predictions, inventories increased by 5.6 million barrels. Today, the market again expects a decline in oil reserves in the US by 2.79 million barrels for the past week. However, there is a high probability that these forecasts will not be matched by the actual data. There are also concerns on the market about the formation of an oversupply of oil within OPEC itself, given that all countries have started increasing oil production again. At the same time, Iran may remain on the market and supply oil in limited quantities, given the softening of Donald Trump's rhetoric. The growth of oil demand is also slowing. In particular, the decline in oil imports can be seen in China and Latin America.
However, at the moment we cannot see any signs for the end of the uptrend. Moreover, the latest decreasing in oil prices can be seen as another price correction, after which we would be awaiting the recovery of prices to at least 70 dollars in the near future. It is also possible to see a consolidation in the range of 67.2-71 dollars. Therefore, in the short term the most optimal would be the deals to buy, according to the trend.
