Good day, dear traders!. I present to your attention a review for oil.
So let’s remember where it all started. On December 5, the OPEC summit was held, where the participants agreed to reduce production by 500 tons of barrels per day. The next day, Saudi Arabia unilaterally committed to a reduction of another 400 tons of barrels.
Tonight, the American Petroleum Institute predicted an increase in reserves to 1.4 ml barrels.
It would seem those titanic efforts were made to keep oil prices rising. Major cuts announced. Although in fact, it is very difficult to control the reduction measures, and the Saudis talked about this at the summit. Moreover, it came to the point that they parted without a joint statement and a common dinner (on the ship). This does not mean that they were full or not, but that there is no agreement within OPEC. They suspect each other of not complying with quotas. On the other hand, it’s as if there’s nowhere to reduce, and these disputes, claims, and distrust begin. Traders look at all this and they don’t buy oil. In fact – the oil was worth at the meeting of 58.5, and now it is 58.7. And in my opinion, the oil bulls may soon get bored. The trigger for the fall in oil may be today’s news on oil reserves in the United States from the EIA. And if the Americans pumped a lot – oil can collapse great on the fixation of long positions – traders disappointed in such an increase in oil.
Good luck with trading and follow the rules!