The price of oil after the start of long-term growth corrected amid growing U.S. oil inventories. Another indicator of oil and petroleum products inventories in the U.S. will be released today at 14:30 GMT.
We are negative about the prospects for growth of the price of U.S. benchmark Light Sweet crude oil due to several factors. Thus, the agreement on Iran's nuclear program will be signed sooner or later, that will increase the supply of oil on the market. On the other hand the U.S. has a record amount of oil production that has become possible thanks to the development of new technologies of horizontal drilling and hydraulic fracturing.
In addition, the growth of the Chinese economy, which is the world's second largest consumer of oil, will lead to lower rates of growth in demand for oil.
We maintain a long-term negative outlook for oil with the objectives of about 92 dollars per barrel.
Wish you the profits!
FXFINPRO Capital Analytical department.