The rates continue in the frames of an upward trend. Oil has already been trading above $60 for a long time, testing new levels, which had not happened over the last 2-3 years. The main factor that limits the growth of oil prices is still the drilling activity in the United States and the increase of shale oil extraction. According to the latest forecast from the Energy Information Administration (EIA), shale oil extraction in the U.S. will have grown for the 14th consecutive month. As a result, the rates from the last week consolidated within the range of $63.08-$64.97 per barrel.
OPEC revised its forecasts for oil supplies from countries outside the cartel in 2018. According to OPEC, supply growth will increase by 1.15 million barrels a day, instead of 0.99 million. This also negatively affected the cost of oil. At the same time, OPEC has implemented a deal to reduce oil production by 129%, which allows the price of oil to stay at its highest levels for the past three years. Leaders of oil reduction are Venezuela, where oil extraction is decreasing due to the catastrophic situation in the economy, and Saudi Arabia, where oil production is seasonally decreasing in winter.
At the moment the most optimal would be the deals to BUY, which is confirmed by the Stochastic oscillator. You should also pay attention to the entry points 63.08 and 64.97 USD, the breaking of which will signal the resumption of the trend or some shifting of the support line. There are no signs of a trend reversal at the moment, but the probability of a trend reversal remains in the long term, provided that the growth of oil extraction in the US will be too rapid, and this again will lead to an oversaturation of the market.
