The price of American benchmark Light Sweet crude oil continues to hold at high levels and is currently trading around the level of 104 dollars per barrel. The reason for the growth was positive data on consumer confidence in the U.S., which increased to 82.6 in April, against the forecast of 81.2. In addition, analysts of the International Energy Agency lowered its forecast for oil demand on the world market. In particular was reduced the forecast of oil consumption in Russia by 55 thousand barrels per day to 3.5 million barrels, with the possibility of further reducing by another 150 thousand due to the economic sanctions against the country.
Additionally, the organization announced the reduction of oil supply by the countries that are not the members of OPEC for 250 thousand barrels. At the same time we note the record volumes of oil production in the U.S., along with the growth of exports from Iran that may lead to a decrease in the price of oil. In the near future prices will be maintained by instability in Ukraine. We maintain a long-term negative outlook for oil.
Wish you the profits!
FXFINPRO Capital Analytical department.