The situation on the oil market depends on several factors. Thus, the slowdown of industry in China, record oil production in the U.S. and reduced demand for petroleum products in North America because fo the warming after the unusually cold winter contribute to the fall of quotations of oil. In addition, on the last week was decided to sell the test lot of 5 million barrels of oil from strategic reserves of the United States, which also hit the price.
On the other hand the growth of the U.S. economy and the EU, the risks of failure of supply due to the tense situation in Libya, Iran, Sudan and South Crimea support bulls. In addition, the International Energy Agency raised its forecast for growth in global oil demand in 2014 to 100,000 barrels a day - to 92.7 million barrels, or 1.4 million barrels per day higher than in 2013.
On this background, we maintain long-term and medium-term negative outlook for oil. A signal to sell will be fixing of price below 98.00. The target in case of the fall will be at 92.00 dollars per barrel. We should not forget about the risks associated to the possible sanctions against Russia.
Wish you the profits!
FXFINPRO Capital Analytical department.