- OPEC made a U-turn
- Record breaking crude oil losing streak persists
- Trump urging to increase oil production
- Brent crude future most unlikely to shine
A record crude oil losing streak
Yesterday, oil had been trading around 60.00 and there were anticipations regarding a sparkling move towards the 64-66.30 region. However, the hopes diminished, as OPEC made a U-turn and Trump continued to urge about increasing oil production and a decreased crude oil price. Most crucially, Brent oil has dipped 2% in today’s Asia Pacific trading session and it has fallen over 21% since its October Peak.
Crude oil daily price chart
Wobbling UPEC making a U-turn
Ahead of US sanction on Iran, supply stocks had been rising dramatically, that experienced a 4-yearly high oil price. As a consequence, US administration increased its call for a decreased oil price and an increased oil production to enhance the supply level. In response to this, the Saudi Arabia has at last complied to this and they became accordant regarding an increase in oil supply. Alongside, Russia had also agreed to boost its oil production and US oil production has surged to a record level.
At the beginning of November, US made an announcement that they would provide waivers to eight different nations, that would let them to buy Iranian oil at a reduced price. In turn, this announcement had a potential impact and Iranian sanction didn’t have much to do with oil market supply.
Consequently, it also had led OPEC in to a U-turn, and they are expecting to increase supply and crude oil momentum is set to be bearish in near term outlook. Additionally, Trump repeatedly had been urging about increasing oil production, as US reached a record level oil stock.
Overall, a yearly low for crude is knocking at the door, lurching it below 58.00 region, as it is resided at 59.07 while this report is being written. Key support still is wrestling at 58.20 region and on the flipside, a resistance is anticipated at 63.30 region, however, further fallout might have been imminent and could result in an immense toppling.
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[Disclaimer: The content of this article is personal opinion and should not be considered as investment advice or suggestion towards any trading activity.]