20.05.2016 - Oil may correct after a strong growth

The situation on the oil market remains volatile due to the large amount of conflicting information. Thus, the volume of US crude fell to 8.79 million barrels per day that together with disruptions of oil supplies from Canada puts pressure on quotations. In addition, attacks on oil facilities in Nigeria and the crisis in Venezuela, also contribute to the growth of quotations. On the other hand, Iran is continuing to increase production volume and similar actions are projected from countries such as Saudi Arabia, Russia, Iraq, Kuwait and others. Approximation of WTI crude oil quotations to the level of resistance at 50 dollars per barrel, increases the number of willing to fix positions after the long-term growth. We forecast a drop in prices of oil in the near future within the correction by 15-20%.

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