Quotations of the U.S. benchmark Light Sweet crude oil again reached the strong support at 101.00 dollars per barrel. Price decline is due to several factors. Thus, in the United States the Fed continues to taper the quantitative easing program, in China is slowing the industrial production, and the latest data on the trade balance in the second world's largest oil consumer after the United States showed a deficit of 23 billion, while analysts expected a surplus of 13.2 billion. Another factor that leads to a decrease in demand for oil and oil products is warming in North America, where this year have been observed abnormal frosts, which have led to an increased demand for fuel.
Among the factors that support oil prices are struggle of the Libyan government with rebels for control over the ports through which goes the export of oil and the unstable situation in Iraq and South Sudan. In addition, traders are afraid of rising tensions in Crimea.
We maintain our negative medium and long term outlook for oil prices. A signal to sell will be fixation of price below 101.00 dollars per barrel.
Wish you the profits!
FXFINPRO Capital Analytical department.