22.08.2016 - We forecast a drop of oil in the near future
Oil price decreases today against the backdrop of fixing positions after a strong growth since the beginning of this month, which was caused by speculation on the possible reaching of consensus on freezing the volume of oil production in the OPEC countries, Russia and other major producers. This issue will be discussed at the end of September in Algiers at the energy summit. According to our forecasts, the probability of a consensus is low, and even its achievement will not be able to change the situation with an excess of oil on the market. From a technical point of view on the chart Light Sweet oil was formed a reversal pattern - double top, which gives reason to expect a drop in prices in the near future. Our medium-term outlook also remains negative with potential targets at 40.00 and 36.00 dollars per barrel.