11.11.2014 - The oil after some consolidation continued to decline
The price of US benchmark Light Sweet crude oil continues to decline following the consolidation of price below the level of 79.40 dollars per barrel. A positive signal, which has managed to slow the decline in oil price was the news about the growth of the trade surplus in China to 45.3 billion in October, which is almost 50% more than in the previous month. Despite this, the main reason for the fall is the reduction of oil consumption forecasts in the world, output growth in the US, as well as a high probability of growth of the supply of Iranian oil on the market due to the weakening of the sanctions against the Islamic state. It is worth noting that the trend in prices may change after OPEC meeting on November 27, but according to analysts, the export quotas will not be reduced, which will continue to put pressure on oil prices in the world. In this regard, we maintain a medium-term negative outlook and recommend holding short positions with the objectives near 72.00 and 70.00 dollars per barrel.