Brent in motion
raw materials market is volatile at the beginning of the week. In the morning, Brent oil was consolidated in the peaks achieved, after noon it decreases. The barrel of the North Sea variety is traded at $ 97.00. Technically, Brent was supposed to adjust to $ 97 after a test of $ 99.40. After the correctional fluctuations are completed, Brent will be able to return to growth in the direction of $ 101.00.
The fundamental picture in oil is still formed in favor of the “bulls”. Firstly, there are great doubts about the stability of chains of global raw materials supplies. Secondly, after OPEC+ solutions to reduce and so rather limited oil production in November by 2 million barrels per day the proposal of raw materials is reduced. As we mentioned earlier, a cartel for 3.5 – 3.6 million barrels per day lags behind his own plan on quotas. So he will be from the coordinated levels even further.
Technically, investors in the market could “squeeze” from the positions of players to lower. Fresh statistics from Baker Hughes did not give any new information. Drill activity in the United States, despite the high prices for raw materials, is maintained sluggish. The indicator of the number of active drill now is now 602 pcs. Despite the fact that by the beginning of August he was at 595 pcs. There is no pronounced dynamics here, since companies engaged in the shale sector are afraid to invest in development and expansion due to the recession.