Analysts say oil will continue to weaken

The likelihood that oil prices will continue to fall in the next few weeks is high, according to analysts.

Today's sell-off in the energy sector has been triggered by reports that US and Russian mining yields are showing record levels. The increased risks of a possible slowdown in the global economy in 2019 were also in addition to today's downward movement. According to Tamas Varga, senior analyst at PVM Oil Associates, "the only way is down." "There are a lot of factors and variables regarding the balance between supply and demand for oil based on today's data and mood." Let's say every attempt to rally up will be met by strong resistance from sellers. "- says Wow.

Uncertainty and volatility tighten their grip again. Brent crude oil today fell by about 4% to $ 57.20 a barrel, recording a third consecutive session of declines. Meanwhile, the US West Texas Intermediate (WTI) went below $ 50 and stood under psychological support for the first time in more than a year. Thus the price reached $ 47.70 - $ 47.94 per barrel. Both benchmarks are down 30% of their peak in October.

The closely watched OPEC meeting earlier this month was to alleviate investor concerns about the expected yield levels in 2019. But the deal reached at the Cartel meeting is yet to have its "favorable" effect on oil prices . The Energy Alliance has agreed to reduce output by 1.2 million barrels per day in the first six months of 2019. OPEC members will trigger 800,000 barrels, and Russia and its other allies will reduce production by 400,000 barrels. However, the effect will only be felt in January, and Russia warned that their cut would be gradual.

"It is possible to have a momentum of short-term profits, and at any time from today to the end of the year, but we are not optimistic in the long run," says Varga

Source: CNBC

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