Oil rise after new agreement between Russia and Saudi Arabia

Oil prices rose on Tuesday after Russia and Saudi Arabia issued a report stating that they are considering extending the agreement to cut production both in Opec countries and outside.

Russian Energy Minister Alexander Novak was key to lightening the deal in May, and yesterday said unofficial talks were taking place between the participants in the deal.

However, according to observers at the International Energy Agency (IEA), compliance with the transaction requirements is violated. This is most often the case in poorer countries that are heavily dependent on oil and need more production.

In addition, in recent weeks, oil has also been backed by delayed delivery due to Hurricane Harvey and growing tensions between North Korea and the United States. Typically, any sign of political disruption or tension leads to a positive impact on the price of oil.

Source: Bloomberg Pro Terminal

Comment

The price is in a long-term downward trend, with the last upward wave forming a flag that is activated in the upward direction and at the same time breaks through a 50% Fibonacci retracement - a strong upward signal. Yesterday, the price has gone over 200SMA and if today Fibonacci can hold more than 50%, it is likely to grow, with a key level of $ 49.30 a barrel.

Jr Trader Petar Milanov

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