OPEC hit the bullish oil trend. What next?

OPEC again lowered its forecast for next year's global demand growth for the third consecutive month, relying on expectations for global economic development, trade disputes and volatile emerging markets.

In its monthly report, OPEC states that demand for oil worldwide will increase by only 1.36m. barrels per day in the following year, and this is more than 50,000 less than the previous cartel estimate.

The oil company also cut its forecast for oil demand in 2019. with 300,000 barrels per day from last month to 31.8 million. This in turn is a 900,000 barrel down on last year's 2018 forecast.

Iran

In addition to the negative foundations for black gold, OPEC has announced that its own yield has increased by about 132,000 a day in September. S. Arabia and Libya are the main culprits for the growth of the mining, combined, and the two countries largely manage to offset Iran's declining exports. As for sanctions against Iran, they remain in force, and OPEC is committed to increasing production to fully compensate for Iranian supplies.

USA

2018d. will be key in the US oil business. The shale revolution in the country is in full force, and oil production is expected to grow by 1.39 million barrels to a record 10.74 million.

Technical View - WTI

The long-term trend remains long, and the current adjustment gives hopes for bulls to buy at a cheap price. The price forms an inverted H & S, and it is currently successfully testing the line of the figure. In the short term, I expect the price to enter the figure and a basic diagonal test that will be crucial for the subsequent movement. Break below the main trend line and the 200-year average, which coincides with 23.6% Fibonacci correction, will lead to increased sales.

A trend from current levels will be too risky, so it's a good idea to wait for a test and price setting in the vicinity and over the main diagonal. Such a formation will provide a prerequisite for purchases, while a breakthrough in the diagonal would rather put the price in mid-term consolidation than in a downward trend.

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