The last three sessions gives hope for oil demand. However, it is worth looking on oil charts in longer term than only last few sessions. Last week ended with a fifth downward candle in a row, cancelling all former growth that followed the ratification of the November agreement when representatives of the OPEC countries agreed to cut oil production in November-December 2016.

This has led to a marked increase in oil prices starting in November 2016. Limited output came into force in January, but oil stocks are not falling at all and oil production in the United States is growing, which has not joint the agreement.

ropa brend
OIL D1

There is no prospect for further rise in oil prices

Investors waited for the May meeting, where was achieved an extension of the current cut program only. This clearly disappointed bulls end we are seeing declinse in oil prices. Nor is there any indication at present that the current downward trend is about to reverse and what more OPEC’s comments also do not suggest that the current situation will change.

So current increases should be treated only as correction and in near future we can expect a new wave of sales.

ropa crude

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