HelenRush

OPEC+ deal fails to inspire oil bulls

TVC:UKOIL   CFDs on Brent Crude Oil
After a short-term positive reaction to the OPEC+ deal on Friday, crude oil prices struggle to show a sustained recovery as the exporters agreed to curb output by 1.2 million barrels a day. Despite a consensus was finally reached, investors refrain from aggressive buying as there are some doubts that all the members of the group will fulfill their obligations honestly. Traders also fear that the agreed cuts won’t be enough to balance the global market.

In other news, Libya’s state oil company NOC declared a shutdown of its biggest oilfield. This could lead to an output loss of over 300,000 barrels per day. Traditionally, supply disruptions have only a short –term effect on crude oil prices, but this coupled with the OPEC+ deal could at least help Brent to remain afloat for the time being.

Meanwhile, the US shale activity remains a downside risk for the market, as well as doubts surrounding the deal between the OPEC exporters and their allies. As such, we don’t see a high probability of prices rising back to-wards the $70 barrier. However, the overall market picture looks better now. In the short term, Brent needs to firmly get back above $62 to avoid profit-taking.

Comments

Home Stock Screener Forex Screener Crypto Screener Economic Calendar How It Works Chart Features Pricing Refer a friend House Rules Help Center Website & Broker Solutions Widgets Charting Solutions Lightweight Charting Library Blog & News Twitter
Profile Profile Settings Account and Billing Referred friends Coins My Support Tickets Help Center Ideas Published Followers Following Private Messages Chat Sign Out