By IFCMarkets
OPEC + is to discuss a reduction in oil production
The American President Donald Trump was the first to talk about the planned discussion on reducing oil production. The United States are interested in rising world prices to maintain the production of their shale oil, which requires significant expenses. Due to global quarantine amid the coronavirus pandemic, Brent quotes fell from $ 70 in January this year to $ 25 per barrel. Moreover, according to the forecasts of most market participants, they should have dropped to $ 20 per barrel and should have kept this level for several months until the pandemic declines. Before the spread of Covid-19, the global oil consumption was about 100 million barrels per day (BPD). Now OPEC + will discuss production cuts. According to various estimates, it can range from a minimum of 6 million BPD to 15 million BPD. Real figures of the oil reduction will determine the dynamics of the Brent quotes. Note that the International Energy Agency estimated a decrease in global demand due to coronavirus at 30 million BPD in the 2nd quarter, which is more than the upper estimate of the expected reduction in OPEC +.
| Indicator | VALUE | Signal |
|---|---|---|
| RSI | Buy | |
| MACD | Buy | |
| Parabolic SAR | Buy | |
| Fractals | Buy | |
| MA(200) | Neutral | |
| Bollinger Bands | Neutral |
| Order | Buy |
| Buy stop | Above 35 |
| Stop loss | Below 24,5 |
Market Analysis provided by IFCMarkets